A Business Encyclopedia

Post Office Savings Account

Definition: The Post Office Savings Account is the deposit scheme offered by the department of post on which fixed interest is paid. The individual investors deposit a good portion of their financial assets in a postal savings account in order to earn a fixed rate of interest on the investments.

The post office savings account is similar to a saving bank account ( a portion of financial assets deposited in the savings account in a bank). It has the following features:

  1. The annual rate of interest is 4% per annum on individual/joint accounts.
  2. The minimum deposit required to open the account is 20 for a non-cheque facility accounts. Subject to the withdrawal, a minimum balance of Rs. 50 is required to be maintained in the non-cheque facility accounts.
  3. The minimum deposit required to open a cheque facility account is 500 and subject to withdrawal a minimum balance of Rs. 500 must be maintained in such accounts.
  4. There is no limit on the maximum deposit in the post savings account.
  5. The interest earned on the account is tax exempted up to 10,000 in a financial year.
  6. The nomination facility is available at the time of the opening of the account or even after the opening of the account.
  7. One account can be opened in one post office either individually or jointly by two or three adults. Also, the account can be opened in the name of the minor and minor of age 10 or above can open and operate the account. Once the minor attains the age of 18 years is required to convert the account in his name.
  8. The deposits and withdrawals can be easily done through electronic mode in the Core Banking Solution (CBS) Post Offices.
  9. The account can be transferred from one post office to another, and also the inter-post office transactions can be done between the CBS post offices.

Note: The ATM/Debit card is issued to the savings account holder, provided a prescribed minimum balance is held in the account on the day of the issue of a card.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

cost inflation definitionsources of risk in capital budgetingincome tax return itr 1refresher training objectivesleadership styles participativemeaning of monopolistic competitionexample of diminishing marginal utilitysole proprietor businesseshow to calculate national income from gnpcts in bankingwhat is a flanker brandcobb douglas production function explainedexamples of stratified sampling in statisticssubsidiary meaning in hindiprinciple of functional definitionaccelerator principle formulacharacteristics affecting consumer behaviorexplain retained earningsnominal groupingcross elasticity of demand for complementary goodsdefine repo rate and reverse repo ratewhat is purchasing power parityknight risk uncertainty and profitdefine autocratdefinition of ethical theoriesasnoff matrixdefinition of monetisationwhat are the determinants of elasticityprocess of hr audita report on procedure of opening a demat accountholistically meanspluralist industrial relationsbypassing definitionscientific management theory taylordashboards definitionchit definesender receiver definitionlpc model of leadershipchit fundsemployee pf contributionmarginal utility curve definitionmotives for holding cashduality principle in accountingwhat is moratorium periodgraphic rating scale definitiondefine lppsenior citizen saving scheme interest ratepavlov stimulus response theoryerg motivation theorysaving certificatesinformal communication in organizationssocial loafingdefine expectancy theoryschumpeter definition of entrepreneurtridimensional theorycollusive and non collusive oligopolymeaning of flankassumptions of indifference curveassest definitionexamples of referent powersix sigma methodologiespricing methods in marketinghomogeneous definition economicsguerilla warfare meaningtiming of neftdelegating upwardsbusiness jargons listcollective bargaining in indiafree rein leadership definitionbasic ethical theoriesclassical management definitionconglomerate diversification exampleneft transfer timings on saturday