Be prepared to be penalised if you don't maintain a minimum balance in your post office savings account by December 11, 2020. The India Post said on Twitter, "Now maintaining minimum balance in Post Office Savings Account is mandatory."
The minimum amount that needs to be maintained in a post office savings account is Rs 500.
As per the India Post Official website, if the minimum balance of Rs 500 is not maintained in a savings account at the end of the financial year, Rs 100 will be deducted as account maintenance fee and if the account balance becomes nil, then the account shall be automatically closed.
A Post Office savings account can be opened by a single adult, or jointly by two adults, or a guardian on behalf of a minor, or a guardian on behalf of a person of unsound mind, or by a minor above 10 years in his own name. Only one post office savings account can be opened by an individual.
Currently, the interest rate being offered on an individual or joint Post Office Savings Account is 4 percent. The interest is calculated on the basis of the minimum balance between 10th of the month and the end of the month.
As per the Post Office website, no interest is allowed in a month if the balance in the account is below Rs 500 between 10th and the last day of the month.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today