Post office savings accounts provide a secure and convenient solution for saving your money. They’re also a great option for those seeking to earn interest on their savings without worrying about excessive fees or minimum balance requirements.
However, an account is considered dormant in post office when there has been no activity in the account for a specified period of time.
What Is A Silent Account In The Post Office?
If no deposit/withdrawal takes place in an account during continuous three financial years, the account is treated as silent/dormant by the post office.
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How To Revive A Silent Account In The Post Office?
Revival of silent account can be done by submitting application along with fresh KYC documents and passbook at concerned post office.
Key Features Of Post Office Savings Account
- Minimum amount for opening of account: Rs 500/- for opening
Post Office Savings Account Interest Rate
- As of November 30, 2023, the interest rate is 4.0% per annum on individual / joint accounts
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Who Can Open Post Office Savings Account ?
- A single adult
- Two adults only (Joint A or Joint B)
- A guardian on behalf of minor
- A guardian on behalf of person of unsound mind
- A minor above 10 years in his own name
Deposit and Withdrawal:
All deposits/ withdrawals are to be done in whole rupees only.
- Minimum deposit amount: – Rs. 500 (subsequent deposit not less than 10 rupees)
- Minimum withdrawal amount: – Rs. 50
- Maximum deposit: – No maximum limit
- No withdrawal will be permitted which effect reducing of minimum balance Rs 500
- In case account balance not raised to Rs. 500 at the end of financial year Rs 50 will be deducted as Account Maintenance Fee and if account balance became Nil the account shall stands automatically closed
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Interest Rules
- Interest will be calculated on the basis of minimum balance between 10th of the month and end of the month and allowed in whole rupees only
- No interest will be allowed in a month if balance between 10th and last day of the month falls below Rs. 500
- Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by Ministry of Finance
- At the time of closure of account, interest will be paid up to the preceding month in which account is closed
Tax Rules
Under section 80TTA of the Income Tax Act, from all Savings Bank Accounts, interest up to Rs. 10,000 earned in a financial year is exempted from taxable Income.
