POSB Features & Benifits (POSB now country's Oldest, Largest Savings Bank in India.)

 Features of Post Office Savings Account

The main features of a Post Office savings account are:

• You can choose to close the account at any time of his or her choosing
• Minors above the age of 10 years can operate their accounts
• To keep the account active at least one deposit or withdrawal must be done once in 3 years
• The account can be opened only using cash
• Nomination facility is available at the time of opening the account and after opening the account
• 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
• Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
• Transactions can be done via ATMs

Post Office Savings Account Benefits

Customers who wish to open these accounts have access to cheque and ATM facilities. Some attractive Benefits of Post Office Savings Accounts have been listed below:

• Cheque facility: Cheque facility is available and can be request for existing accounts as well.
• ATM/Debit card: For those account holders who have maintained the prescribed minimum balance on the day of issuance of the debit card, CBS Post Offices can grant ATM/Debit cards.
• Minor Accounts: Post Office Savings Account is available to minors. For minors below the age of 10, an account can be opened in their name, but the parent or guardian will be given rights to operate the account on their behalf. Minors of 10 years and above can operate the account on their own.
• Portability: If you shift your residence or are not happy with the services of the post office branch or for any other reason, you can shift your Post Office Savings Account to a branch of your choice. Only one account can be opened in one post office.

Nomination: The facility to nominate someone is made available under these accounts at the time of opening the account. The account holder can also choose to nominate a person to receive the proceeds of this account after their demise at any time.

Joint Holdings: Two or three adults are allowed to hold an account together under the joint account facility. A single account can be converted to a joint account and vice versa.

Tax Exemptions: Two or three adults are allowed to hold an account together under the joint account facility. A single account can be converted to a joint account and vice versa.

Electronic Facilities: Customers can make withdrawals and deposits through any electronic mode in CBS Post offices.

Long period for Inactivity: In order to keep the account active you only need to carry out one transaction of a deposit or withdrawal in 3 financial years. The account will not be deemed inactive unless there are no transactions for 3 financial years.