Post Office Saving Accounts offer a secure and hassle-free way to preserve your funds, with the added advantage of earning interest without the burden of minimum balance concerns.
However, when an account remains inactive for an extended period, it is labeled dormant. Discover the simple method to reactivate your dormant Post Office Savings Account and make the most of its features.
Post Office Savings Account Rules: According to Post Office regulations, if no deposit or withdrawal occurs for three consecutive financial years, the account is deemed inactive.
Activating an Inactive Account: To activate a dormant account, submit an application along with updated KYC documents and your passbook to your local post office. This ensures a swift reactivation of the silent account.
Features of Post Office Account:
Minimum Balance: Rs 500
Interest Rate: 4 percent until November 30, 2023, for both personal and joint accounts.
Eligibility to Open an Account
Post Office Savings Accounts can be opened by:
Single adults
Joint account holders
Guardians on behalf of minors
Guardians on behalf of individuals of unsound mind
Minors above 10 years old can open their accounts.
Account Details:
Minimum Deposit: Rs 500
Minimum Withdrawal: Rs 50
Maximum Deposit: No maximum limit
Withdrawal Guidelines: Withdrawals can only be made by check. Balances below Rs 500 incur a Rs 50 maintenance charge annually.
Interest Calculation: Interest is computed on the minimum monthly balance after the 10th of each month, with the government adjusting interest rates quarterly.
Tax Benefits: Under Section 80TTA of the Income Tax Act, individuals can avail tax exemption on interest up to Rs 10,000 from all savings bank accounts in a financial year.
Stay informed and make the most of your Post Office Savings Account with these essential details.
