In what can only be categorized as important news for the citizens of India, India Post has increased the minimum balance limit for the Post Office Savings Bank (POSB).
“Now maintaining minimum balance in Post Office Savings Account is mandatory,” India Post Office tweeted.
The customers will have to maintain the minimum balance of Rs 500 in the post office savings accounts to avoid maintenance charge. The amendment will come into effect from December 12.
“Maintain a minimum balance of Rs 500 in your post office savings accounts by 11.12.2020 to avoid maintenance charge,” India Post tweeted.
It is to be noted that the Post Office Savings Bank account holder needs to maintain a minimum balance of Rs 500 at the end of the financial year to avoid a Rs 100 deduction as maintenance fee. Moreover, if the account balance is nil, the account will be closed.
There are numerous benefits of investing in a Post Office. If you want to invest your hard-earned money without risk, then opt for opening an account in Post Office bank. Post Office deposits are considered to be a safe and secure mode of savings. It is preferred by senior citizens and individuals who want risk free investments. A Post Office savings account is similar to a regular savings account.
The good thing about Post Office accounts is that they offer a specified return on investment. People in rural and semi-rural areas are the major beneficiaries of Post Office accounts.
It is also considered more beneficial in the case of bank fixed deposits (FD). Its FD has been getting much better returns than banks. FDs in post office accounts get interest ranging from 6.25% to 7.5%. In the bank, this rate goes from 3.75 to 7.25%.
Minors above the age of 10 years can open and operate a post office savings account independently.A post office savings account can be opened either by an individual or joint
For the savings account to be deemed operational, account holders will have to make at least one transaction in three years.