Post Office Savings Account: 8 must-know charges

post office

The post office schemes offer a variety of safe and risk-free investment returns through its different investment tools designed for different people considering age, duration of the scheme, and tax benefits. One can open a savings account with the post office.

India Post office Savings account

The Post Office Savings Account (SB) is similar to any savings account offered by a retail bank. The minimum deposit amount is Rs 500 and the minimum withdrawal amount is just Rs 50. It offers a 4% interest rate. A savings bank account can be opened by both adults and minors. There is no maximum investment amount and a tax exemption of up to 10,000.

Withdrawal from PO Account

No withdrawals will be allowed in Post Office Savings Accounts, resulting in a decrease in the minimum balance of Rs. 500. If the account balance does not reach Rs. 500 by the end of the fiscal year, Rs. 50 will be removed as Account Maintenance Fee, and if the account balance falls below Nil, the account will be automatically cancelled.

Under POSA there are charges associated. Here is a list of 8 services and the associated charges.

  • Issue of duplicate pass book – Rs. 50
  • Issue of statement of account or deposit receipt-Rs. 20 in each case.
  • Issue of pass book in lieu of lost or mutilated certificate –Rs. 10 per registration.
  • Cancellation or change of nomination –Rs. 50
  • Transfer of account – Rs. 100
  • Pledging of account – Rs. 100
  • Issue of cheque book in Savings Bank Account – No fee for upto10 leafs in a calendar year and thereafter at Rs. 2 per cheque leaf.
  • Charges on dishonour of cheque-Rs. 100

Read Also: Save Tax: 10 Income Tax planning Tips for FY 2022-23

Note that tax as applicable on the above service charges shall also be applicable.

From savings account to long term investment PPF, India Post offers Post Office Savings Account (SB), National Savings Recurring Deposit Account (RD), National Savings Time Deposit Account (TD), National Savings Monthly Income Account (MIS), Senior Citizens Savings Scheme Account (SCSS), Public Provident Fund Account (PPF), National Savings Certificates (VIIIth Issue) (NSC), Sukanya Samriddhi Account (SSA) and latest added is Mahila Samman Yojana specially launched for women investors.

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