The Post Office Savings Account is an important component of personal finance for many individuals. It is a deposit scheme offered by the post offices all across India. Like any bank account, it provides a fixed rate of interest on the balance kept in the account. Some recent changes regarding a minimum balance in the post office savings account have to be taken into consideration by the account holders or else they may have to pay an unnecessary fine.
Starting from December 11, 2021, the account holders will be required to keep a minimum amount of Rs 500 in their post office savings account. This announcement was made by the Department of Post.
If the account holders do not keep the stipulated minimum balance in their post office savings account, they will be charged a maintenance fee apart from the applicable Goods and Services Tax (GST).
In failing to keep the minimum balance of Rs 500, an amount of Rs 100 along with the GST will be deducted from the accounts.
"Maintain a minimum balance of Rs 500 in your savings account. Assure your savings account has a minimum balance amount by 11th December 2020, failing which maintenance charge Rs 100 plus GST will be deducted from your account," the Department of Post said in its announcement.
It is the kind of loss that can be easily avoided. The account holders must take note to keep and maintain the stipulated balance in their post office savings account.
The post office savings account can be opened by an adult in India. It can be a joint account between two adults as well. For a person who is not of age yet, a guardian can open the account on their behalf.
It currently offers an interest of 4 per cent per annum and it is calculated on the minimum balance kept between the 10th date and the end of the month.