Most people have savings accounts these days, and all transactions are done through them. However, most people have savings accounts in banks. Compared to banks, very few people open savings accounts in post offices. But there are many advantages to opening a savings account in post offices. One advantage is that the interest rate is better than that of other banks. Another advantage is that the minimum balance limit is very low, which anyone can easily maintain. Learn more details about post office savings accounts here.
Post Office Offers Better Interest Than Banks
Banks give interest on savings accounts from time to time, usually between 2.70% to 3%. But post office savings accounts offer better returns. Currently, the interest rate on a post office savings account is 4.0%.
Bank-Wise Interest Rates
Here are the current interest rates offered by popular banks on savings accounts:
- SBI: 2.70%
- PNB: 2.70%
- BOI: 2.90%
- BOB: 2.75%
- HDFC: 3.00%
- ICICI: 3.00%
Low Minimum Balance Requirement
To keep your savings account active, banks and post offices ask you to maintain a minimum balance. In most banks, this is usually around ₹1,000. For private banks like HDFC and ICICI, it can be up to ₹10,000. But in the post office savings account, the minimum balance required is just ₹500. The minimum withdrawal allowed is ₹50.
Bank-Like Facilities in Post Offices
Post office savings accounts also provide many services like:
- Chequebook
- ATM Card
- Mobile and Internet banking
- Aadhaar linking
You can also enroll in schemes like:
- Atal Pension Yojana
- Pradhan Mantri Suraksha Bima Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana
Who Can Open a Post Office Account?
- Any adult can open an individual account.
- Two people can also open a joint account.
- A minor’s account can be opened by their parents or legal guardian.
- A minor aged 10 years or more can open an account in their own name.
- After turning 18, the account can be transferred to the minor’s name with proper KYC documents.