The government has increased the interest rates for some small savings schemes for the October-December quarter of the financial year 2023. However, there has been no change in the interest rates for several schemes including Public Provident Fund (PPF), National Savings Certificate. NSC) and Post Office Savings.
Over the years, post offices have created many small savings schemes to meet the needs of investors, mostly in small towns and rural areas. Currently, 4 per cent annual interest rate is offered on post office savings for individual and joint accounts. In addition, up to Rs 10,000 of the interest paid in a financial year is tax-free.
For savings accounts with check book access, a minimum balance of Rs 500 is usually required to be maintained. Nomination is required at the time of account opening and conversion of single account to joint account or vice versa is not permitted.
A post office savings account allows a minimum withdrawal of Rs 50. The minimum balance in the account should be Rs 500 and withdrawals below this amount are not allowed.
Similarly, non-maintenance of the minimum balance will attract a penalty of Rs 50 if the balance at the end of the financial year is less than Rs 500.
The minimum amount between the tenth and the end of the month will be considered for calculation of interest. No interest will be paid for the month if the account balance is less than Rs.500 on the 10th and last day of a particular month. At the end of each financial year, interest will be credited to the account at the rate prescribed by the Ministry of Finance.
Here are some of the facilities that can be availed on Post Office Savings Accounts:
1. Check Book
2. ATM Card
3. Aadhar Seeding
4. Atal Pension Yojana (APY)
5. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
6. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
7. E-Banking / Mobile Banking.
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