Account Will Be Closed If Minimum Balance Not Maintained In Post Office Savings Account

india post saving
Share this News:

Mrunal Jadhav

Pune, November 29, 2020: From now it will be mandatory to keep a minimum balance in the Post Office savings account. India Post has increased the minimum balance limit for the savings account of the Post Office Savings Bank (POSB). This new rule of the post office will be applicable from December 12. According to India Post, post office savings account holders will have to maintain a minimum of 500 rupees in the savings account.

Deposit minimum balance amount by 11 December

In this regard, India Post Office has shared this information on Twitter. The post state that it is necessary to maintain a minimum balance in the post office saving account. And to avoid the maintenance charge, deposit a minimum of Rs 500 in your post office’s savings accounts by 11.12.2020.

100 rupees maintenance charge will be deducted

According to the official website of India Post, if a minimum balance of Rs 500 is not deposited in the savings account at the end of the financial year, then Rs 100 will be deducted as an account maintenance charge and if the account becomes zero balance, then the account will close automatically.

Who can open Post Office Savings account

(i)a single adult

(ii)two adults only (Joint A or Joint B)

(iii)a guardian on behalf of minor

(iv)a guardian on behalf of person of unsound mind ​

(iv)a minor above 10 years in his own name

Interest on post office savings account

Currently, the interest rate given on an individual or joint post office savings account is 4 percent. The interest is calculated between the 10th of the month and the end of the month based on the minimum balance amount. According to the post office website, if the balance in the month is less than Rs 500 between the 10th day and the last day of the month, then no interest will be paid in that month.