Post office savings account was introduced with the aim of focusing on the undeveloped area or rural population who has little or no access to banks or banking facilities. As the post office was created extensively at every local and remote location in India, the offices created were used as banking portals. With over 25,000 branches all over the cities and towns, post offices are found within a radius of every 5-20kms. Through this scheme that was established, they function as banks benefitting the rural population, while the urban areas can also avail this facility.
INDIA POST SAVINGS ACCOUNT
The accounting scheme offers a wide range of features that can be used by the people who are looking for a great and trouble-free banking experience. Here are some features that are listed below;
- EASY ACCOUNT OPENING: This account can be opened with a minimum balance of Rs.50, it is accurate, open and issue-free as there are no penalties. Once the account has been opened, it can be used for personal use as a saving account. The minimum balance for opening a cheque account is Rs.500, and this can be taken in an existing account. This is lower compared to the Public sector and private sector banks which compulsory a minimum of Rs.1000 and Rs. 5000 which can also be more than this.
- ATM FACILITIES: It can avail the ATM facility that comes as an add-on to the account, this has been opened to as many people that have accounts.
- SMS ALERTS: Account holders can avail SMS alert for those who opened the account to have information about the running of their account which makes it easy to the bank. The details of every transaction will be sent to their mobile phone to the registered number.
- MINIMAL CHARGES: There are minimal charges that will be deducted through the post office saving account, deposits can be made through any branches in India with no charges.
- INTEREST RATES: The rate of interest provided by the post office varies from time to time, and it’s 4%. In case of opening a saving account for a girl child in a post office, a Sukany Samriddhi Yojana account in a post office provides about 8.5% interest per annum.
OPENING A POST OFFICE SAVINGS ACCOUNT
The post office saving account can be opened by adults, minors over the ages of 10 years, a guardian on behalf of a group of people. This cannot be opened by Companies or for transacting business.
The following are steps to open an account;
- Get a form from the post office or online
- Submit the filled form, signed along with the required documents and a photograph.
- Credit your account with the amount you will like to deposit which is subject to a minimum of Rs.20.
- The deposit will be opened.
- There is the separate form which is available to the senior citizens.
To open a savings account, you will need to submit the following;
- Address proof like Ration card, Bank passbook, Electrical bill etc.
- ID proofs like Voter ID, driving license etc
- Passport Photographs.
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