Post Office Savings Account (CS)
Currently, the postal savings book interest rate is 4% annual interest rate on individual or group accounts. Additionally, up to Rs 10,000 of interest is tax exempt in a given financial year. The minimum balance required for savings accounts with checkbook access is Rs 500. Appointment is mandatory at the time of account opening. Conversion of an individual account to a joint account or vice versa is not allowed
The third quarter, from October to December, will be subject to the increase in the interest rate for small savings plans.
These facilities can be used on a savings account
(ii) ATM card
(iii) online banking/mobile banking
(iv) Aadhaar Seeding
(v)Atal Pension Yojana (APY)
(vi) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
(vii) Pradhan Mantri Jeevan Jeevan Jyoti Bima Yojana (PMJJ
How to Claim Payment for a Deceased Account/Certificate Holder
According to the India Post’s FAQ page, “The applicant can be the proxy or the legal heir.
If there is a nomination, the candidate may present the claim in the prescribed form with the death certificate. If there is no nomination, any of the legal heirs may prefer the claim in the prescribed form [SB84]. For this death certificate and declarations of consent of all legal heirs are required. Claim up to one lakh can be settled.
If the claim exceeds one lakh, claims can be settled by legal evidence i.e. Probate of Will or Certificate of Inheritance.
Penalty for not maintaining balance
The minimum amount to be withdrawn from the account is Rs 50. There is no limit to the maximum payout. No withdrawals that reduce the minimum amount of Rs. 500 are allowed. Account maintenance fee of Rs. 50 will be charged if the account balance does not rise to Rs. 500 by the end of the financial year, and the account will be closed immediately if the account balance is zero.
Payment of interest on savings account
Interest will only be paid in full rupees and will be calculated on the basis of the minimum balance between the 10th and the end of the month. If the account balance between the 10th and the last day of the month is less than Rs. 500, no interest will be given for that month. Interest will be credited to the account at the end of each fiscal year at the interest rate set by the Ministry of Finance. As per Section 80TTA of the Income Tax Act, interest earned on all savings bank accounts up to Rs. 10,000 in a financial year is tax exempt and will be paid until the previous month in which the account is closed.