If you have a Post Office Savings Bank account (POSB) of India Post, you will need to maintain at least Rs 500 minimum balance, effective December 11, 2020. A failure to comply with the same will attract a penalty of Rs 100 as maintenance charges, India Post said in a notification earlier.
The amendment which will be effective from Thursday, POSB customers will need to maintain a minimum balance of Rs 500 in any savings account on any given day in order to avoid maintenance charges, the Department of Post said earlier.
If the minimum balance is not maintained, a charge of Rs 100 will be deducted and if the balance becomes nil then the account shall be closed, according to India Post Official website.
Savings schemes offered by India Post
India Post offers several small savings schemes, commonly known as post office saving schemes. These schemes include the post office savings account, Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposit for a 5 Year Term, Kisan Vikas Patra (KVP), and Senior Citizen Savings Scheme (SCSS).
What are late payment fees for recurring deposits?
The monthly deposits for account opened between 1 to 15 should be credited up to 15th of the month and account opened between 16 to the last of the month monthly deposit should be credited by last day of the month. If the monthly installment is not credited for any particular month, then it becomes a default. The defaulted months can be credited subsequently (revival fee for INR. 100/- denomination is Re. 1 for each month of default) maximum of 4 defaults are allowed.
How to open account
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. Also, only one account can be opened in the name of a minor or a person of unsound mind.
The nomination is mandatory at the time of opening the Post Office Savings Account. 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 the 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 the 10th and the last day of the month.
