Post Office Savings Reviews - Smart Money People (2024)

FAQs

Is a post office savings account any good? ›

With more branches than any UK bank, and a vast range of services that you can also make use of, the Post Office could be a good option to open a savings account, especially if you prefer face-to-face contact. However, its accounts are quite basic, so you may want to look elsewhere if you want more for your money.

Unlike other investment avenues like Mutual Funds, Equity, Gold etc it is not possible to operate your Post Office Savings Schemes account online i.e. you cannot track your account or invest online. You always need to keep your passbook updated all the time by standing in post office queues for hours.

Interest earned is tax free up to Rs 10,000 per year. Income tax relief is available on the amount of interest under the provisions of section 80L of the Income Tax Act. The account can be transferred from one post office to another. Single accounts can be converted to joint accounts and vice versa.

Post office savings account: Post office schemes are a means of safe investment and guaranteed returns. In this, people of every age/income group can invest in the schemes available for savings and investment.

The FSCS is funded by the financial services industry and is free to all consumers. So, you can be safe in the knowledge that your savings are protected.

Apart from guaranteeing return on investment, POTD has full government backing, which makes it the safest product. This makes the entire amount in POTD 100 per cent secure, as against deposit insurance for bank FDs that covers up to ₹5 lakh.

As far as investment safety is concerned, both post office and bank RDs are relatively safer. However, post office deposits have an edge as the entire deposit is backed by the government. Bank RDs have protection only up to Rs 5 lakh.

(i) Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 1000. (ii) A maximum of Rs. 9 lakh can be deposited in a single account and 15 lakh in Joint account. (iii) In a joint account, all the joint holders shall have equal share in investment.

Post office savings accounts are safe and provide services at par with bank savings accounts. You can withdraw cash from your post office savings account through ATMs or by visiting your nearest post office branch. The post office savings ATM card charges an annual maintenance charge of Rs. 125 + GST.

When we receive your application and initial deposit, we'll open your account. This normally takes 2 - 3 business days. To do this we need to complete a few tasks. This includes confirming your identity and address.

What is the senior citizen scheme in the post office? ›

Features of the Post Office Senior Citizen Saving Scheme (SCSS) A Post Office Senior Citizen Saving Scheme makes a good investment option for people who have retired as it offers an interest rate of 8.20% w.e.f April 01, 2023, up till March 31, 2024.

In 1969, the bank was transferred from the Post Office to the Treasury. Its name was changed to National Savings Bank, and it gained an independent legal identity under the National Savings Bank Act 1971.

As per a notification issued by the Ministry of Finance on April 9, 2021, the account maintenance fee which is levied for non-maintenance of minimum balance in the post office savings account has been reduced to Rs 50 (inclusive of GST) from Rs 100 levied at present.