Similar to the case with a bank, you can open a savings account with the Post Office as well, and without much stress. PostThe Postice Savings Account comes with attractive interest rates and other benefits.
A post office savings account is similar and related in several ways to a regular savings account. It is one of the most popular savings accounts, and it is restricted to both those in rural areas and urban areas.
It is not popular knowledge, but the saving process for your money has been made easier. At this time, you do not need to go through the stress of depositing your savings or even creating a savings account.
You can now open a private savings account for yourself or any other person around you at the post office. It comes with several benefits and offers, and you can choose any type of savings account you would prefer.
Customers holding a post office savings account can be able to subscribe to various savings schemes through their account. It can also be done online.
This article will guide you through everything and anything you wish to know about post-office savings and login and how to create an account, the benefits and offers that come with it.
What is post office savings?
Post office savings is an offer from the post office that allows individuals to save their money with them. The government provided a scheme for individuals and citizens to save their cash just the simple way it is done with regular savings.
Although it is not a regular savings account pa say, post office savings comes with several benefits and there are offers and types.
When you want to own a post office savings account, then it is important you get to know and understand the types and how they work, and what they represent so you can be able to log in.
What is a post office savings account?
Post office savings account is a scheme provided to help individuals who would, to get a savings account with post office.
This savings scheme has become, over time, one of the most popular and accessible savings accounts.
The most interesting part of this offer is the fact that it can also be opened by a minor above the age of 10 in their own name. An individual, whether a minor or not, is only allowed to open a single account as one account.
However, there is no maximum amount that any individual can deposit in this savings account. Age has no bearing on the type of account or the amount to be deposited. The savings account pays a fixed rate of interest on the individual account balance.
Individual investors who want to earn a fixed rate of interest by simply saving a significant portion of their financial assets with post offices can benefit from this scheme. Because the reach of post offices around the world is far greater than that of regular banks, a large number of people have been unable to get their money for one reason or another.
They can now get access to savings accounts through post offices, and it is a scheme that pays interest to the customer on their savings account balances.
Types of post office savings accounts.
The post office savings account is also a very helpful scheme with its interest rate and offers benefits for those residing in rural parts or even urban areas.
Understanding this important fact about this savings option is as important as understanding the different types of schemes and how they operate.
The different types of post office savings accounts are in the list below:
- public provident fund
- Senior Citizen Savings Schemes
- The Post Office Monthly Income Scheme Account
- National Savings Certificates
Public provident fund (PPF)
The public provident fund is a post office savings account scheme that was launched by the National Savings Institute over the years. The PPF interest rate is currently at 7.1%
An investment in this type of post office savings is eligible for a tax rebate under a certain section of the Income Tax Act.
Moreover, the interest rate on the savings account under this type of post office savings and the maturity amount is totally tax-free.
Senior Citizen Savings Schemes
This is a type of post office savings scheme which is befitting for senior citizens. Individual investors who have their cash under this type of post office saving scheme get offers on regular income as well as safety for depositors.
The regular income for this type of savings is in the form of interest payments. And the scheme providers calculate the interest on every quarter and credit them to the investor’s account.
They also revise the interest rates every quarter. The SCSS interest rate for the current quarter is 7.40% which is a bit higher than the PPF.
Post Office Monthly Income Scheme Account
This type of post-savings account is a less risky investment scheme that provides offers on a regular basis and pays individual investors their every monthly income as depositors’ interest payments.
The current rate of interest is 6.60%. Individuals can choose whether to reinvest their interest or withdraw when it has matured.
National Savings Certificates
This type of account is a small scheme that encourages savings among people who get low income and those who get mid-income.
It is an initiative by the government, hence the guarantee of returns to individual investors. The quarter rate is 6.8%. This fixed income savings scheme has a tenure of 5 years, and investors do not pay tax within the first 5 years and would resume paying tax at the end of the 5 years.
Benefits of post office savings.
Customers or individuals who wish to open any of the types of accounts would have access to checkbooks and ATM facilities. A few other captivating benefits are in the list below:
- If you decide to adjust your residence, you can also shift your Post Savings Account to a branch of your choice. As just one account can be opened in one post office.
- Two or more individuals can be allowed to have joint savings account together.
- Customers who have savings accounts can deposit and withdraw through electronic mode.
- If individual accounts are dormant for 3 years, the account is deemed inactive and will be deactivated.
- You can convert your single account to a joint account with anybody you choose.
There are several other benefits that come with getting or opening a post savings account.
Who is eligible for a post office savings account?
A person who is 10 years of age can also proceed to get a post office account. It does not also matter the type of person who is requesting an account, anyone can get this savings account.
A minor who is 10 years of age or a little older may not be able to get a savings account, as not all children are smart enough to go through the process. In a case like that, the guardian of the minor individual can proceed to get the account for the child with their name.
How to get a post office savings account.
The first step to getting a savings account does not matter if it is a joint account or a single, personal account, or an organizational account. The first thing to do is to visit the nearest posy office near you or go for an online site.
You need to be careful and choose the one that is suitable for you based on the services and offer of benefits and interest rates. Then you can proceed to choose the right type for you.
When you have chosen the type and offer that is best for you, you can pick the form whether it is online or offline and go ahead to fill the form with the necessary information required.
Submit the information you have filled in with a clear passport photograph. If your interest is to get a post saving account without a checkbook, then you will need to pay a deposit amount to your savings account.
Single account holders or investors can deposit a maximum of Rs one lakh while joint account holders can be able to deposit a maximum of Rs two lakhs.
Post office savings account login
You can be able to login into your post office savings account by following the steps in the list below:
- For post office savings account login visit here
- Select Account Login
- Then select Savings
- Enter your User ID. This is 7 digits long and will have been sent to you, from the post office, in the Post or on an Email when you first opened your Savings account.
- You’ll also need to enter your Date of Birth
- There will be a prompt for the 3 digits of your 6-digit security number, otherwise known as your 6DSN.
Conclusion.
The savings account is among the schemes that different posts offer. Furthermore, the post-save account offers a fixed interest rate on each individual’s deposit amount. Hence, the savings scheme is befitting for individuals who want to earn fixed returns from every investment.
FAQs about post office savings
Can i get post office savings account online
Yes. you can search online for the post office website online and proceed to open your savings account.
Who can open post office savings account
Anybody can get a post office savings account. A minor of 10 years can also get an account with their name.
Is post office savings tax free
It depends on the type of post office savings you choose. While some are tax-free, others are not and you can resume paying taxes after 5 years.
Is post office savings account good
Yes. Just like a regular savings account, post office savings is good and easy to operate, and it comes with interest rates and other beneficial offers.
