Post office saving account is similar to a savings account in a bank. It is a safe instrument to park those funds, which you might need to liquidate fully or partially at very short notice. Post office savings accounts are especially suited for those living in rural and semi-rural areas where the reach of banks is very limited.
How to Open Account
The account can be opened at any post office with a minimum balance of Rs. 20. Maximum of Rs. one lakh for single account holder and Rs. two lakhs for joint account holders can be deposited. There is no lock-in or maturity period. One can just walk into a post office, meet the clerk, complete the formalities and the account would be opened.
Who can Open Account
Single account can be opened by an adult, a minor with minimum age of ten years, or a guardian on behalf of a minor or a person of unsound mind.
Joint account can be opened by two or three adults.
Withdrawl of Money
The amount can be withdrawn anytime subject to keeping a minimum balance of Rs. 50 in simple account and Rs. 500 for cheque facility accounts.
Rate of interest is decided by the Central Government from time to time. Interest is calculated on monthly balances and credited annually. Usually it is between three to four per cent.