Most of the people do a daily income as well as a savings plan for the future. Most people have bank accounts to save. Many people depend on the post office and customers get many benefits by opening an account in the post office.
- Under 80TAA of the Income Tax Act, interest tax deduction up to Rs 10,000 per annum is available on all types of savings.
- Accounts can be opened individually or jointly in the post office. He can open an account with his guardian, even if he is an adult or at least 10 years of age.
- Post office savings account earns 4% interest annually. Interest is paid on the tenth day of every month. If the balance amount is less than Rs.500, interest is not available.
- The minimum balance in these accounts should be Rs 500. If this balance is not maintained at the end of each financial year then a penalty of Rs. The account gets closed automatically when the balance is zero.
- If there is no transaction for three consecutive financial years then the account is considered as the principal account. To re-activate it, the customer has to provide KYC.
- Check Book, ATM Card, Net and Mobile Banking, Aadhar Services, Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana are available through Post Office Account. Also the interest rate on post office account is always higher as compared to bank account.
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