In today’s time, savings account has become the need of everyone. From banking facilities to avail government schemes, many tasks are not possible without savings account. Post Office Savings account is an option that is not only convenient, but also provides better interest rate than banks.
Can open account for 500 rupees
Post office savings account can be opened for just 500 rupees. This fulfills the condition of minimum balance, which does not lead to a risk of penalty. Along with this, you also get facilities for banking services like checkbook, ATM card, e-banking and mobile banking. Apart from this, the benefit of Aadhaar linking and government schemes can also be taken. Post office savings account receives 4.0% interest, which is much higher than major banks.
Low interest is available in bank
There are currently both government and private banks in the country, but you should have more money to open a savings account. Where 1000 to 3000 rupees are required to open a savings account in a government bank. At the same time, the minimum balance of savings account in private bank is between 5000 and 10000 rupees. Along with this, interest of 2.70% is available in government banks like SBI and PNB and private bank HDFC and ICICI get interest ranging from 3.00% to 3.50%.
Tax exemption and security
Under Section 80TTA of the Income Tax Act, tax exemption is given on interest up to Rs 10,000. In addition, the post office is operated by the government, making it a completely safe and reliable option.
Who can open an account?
Any adult person can open an account. A joint account can also be opened in the post office, in which 2 people own the account. If a child under 18 years opens an account in the post office, then the owner of that account is parents or parents.