Post office scheme
In today’s era, it has become necessary for everyone to have a savings account. From banking services to taking advantage of government schemes, the importance of savings account is increasing. But do you know that the post office savings scheme can prove to be a better option at times than in banks? The special thing is that you can open your account in the post office with just 500 rupees, while in most banks, more minimum deposits are required. Let’s know why the post office savings account can be beneficial for you.
Interest will be given more than bank
The post office savings account currently receives 4% annual interest, which is better than the general government and private banks. For example, 2.70% interest is received on savings accounts in public sector banks such as SBI and PNB, while private banks have between 3% to 3.50% in HDFC and ICICICI. At the same time, you can open an account by depositing only 500 rupees in the post office, while in government banks, minimum balance has to be kept from 1000 to 3000 rupees and in private banks this limit is up to Rs 10,000. Post office account is a suitable option for youth and small investors due to low minimum amount and better interest rate.
Banking facilities are also available
On opening a post office savings account, you also get banking facilities like checkbook, ATM card, e-banking and mobile banking. Also, government schemes can be availed by linking your account with Aadhaar card. With this, the post office account is not only a means of savings, but also provides all the modern options of digital banking.
Tax exemption will benefit
Under Section 80TTA of the Income Tax Act, a tax exemption of up to Rs 10,000 is received on the interest received on the post office savings account. That is, you do not have to pay tax on this interest income, which makes your savings more beneficial. Also, the post office is operated by the Government of India, so it is considered to be a completely safe and reliable option. The fear of any banking fraud or default remains minimum here.
Who can open an account?
Post office savings account can open any adult person. Apart from this, a joint account can also be opened, in which two people are account holders. It is also possible for children to open an account, where the owners of a child under 18 years of age are their parents or parents.