Post Office Savings Account (SB)
in present, Rate of interest at the post office saving account There is a 4% annual interest rate on individual or joint accounts. Also, interest up to Rs 10,000 in a given financial year is tax-free. The minimum balance required for savings accounts with check-book access is Rs 500. Nomination is mandatory at the time of account opening. Conversion of single to joint account or vice versa is not allowed
The third quarter, from October to December, will be subject to the increased interest rate on small savings schemes.
These facilities can be availed on savings account
i) Check Book
(ii) ATM Card
(iii) eBanking/Mobile Banking
(iv) Aadhaar seeding
(v) Atal Pension Yojana (APY)
(vi)Pradhan Mantri Suraksha Bima Yojana (PMSBY)
(vii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJ)
How to claim payment of deceased account/certificate holder
According to the India Post FAQ page, “The claimant can be the nominee or the legal heir.
If there is nomination, the nominee can submit the claim in the prescribed form along with the death certificate. If there is no nomination, any of the legal heirs can submit the claim in the prescribed form [SB84], It requires death certificates and consent statements from all legal heirs. Claims up to one lakh can be settled.
If the claim is more than one lakh, then the claims can be settled by legal evidence i.e. will or succession certificate.
Penalty for not maintaining balance
The minimum withdrawal amount from the account is Rs 50. There is no maximum payout limit. No withdrawal which reduces the minimum amount of Rs. 500 is allowed. Account Maintenance Fee Rs. If the account balance is Rs. If it is not extended till then a fee of 50 will be charged. 500 at the close of the financial year, and the account will be terminated immediately if the balance in the account becomes zero.
interest payment on savings account
Interest will be paid in whole rupees only and will be calculated on the basis of the minimum balance between the tenth and the end of the month. If the balance in the account between the 10th and last day of the month is less than Rs. 500, no interest will be paid for that month. Interest will be credited to the account at the rate of interest determined by the Ministry of Finance at the end of each financial year. As per Section 80TTA of the Income Tax Act, all savings bank accounts up to Rs. 10,000 in a financial year is exempted from taxation and will be paid up to the prior month in which the account is closed.