With a minimum amount of Rs 20, an individual (or a few individuals in case of joint account) can open his/her/their postal savings account. The minimum balance that needs to be maintained in a non-cheque facility account is Rs 50 and with cheque facility it is Rs 500. Interest earned from an account, up to Rs 10,000 per annum, is tax free.
Key Features:
- Account can be transferred from one post office to another.
- Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
- Joint account can be opened by two or three adults.
- At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
- Single account can be converted into joint and Vice Versa.
- Minor after attaining majority has to apply for conversion of the account in his/her name.
- Inter Post office transactions can be done between CBS post offices.
- ATM/Debit Cards can be issued to Savings Account holders (having prescribed minimum balance on the day of issue of card) of CBS Post offices.
Source: India Post
