Post office savings accounts holders will have to maintain a minimum balance of Rs 500 or else a penalty of Rs 100 and GST will be charged, India Post said. The new rules are effective from December 11.
Post office savings accounts currently offer 4% interest per annum on both individual and joint accounts.
“In case account balance not raised to Rs 500 at the end of financial year Rs 100 will be deducted as Account Maintenance Fee and if account balance became Nil the account shall stand automatically closed,” says the new rule.
{{/usCountry}}“In case account balance not raised to Rs 500 at the end of financial year Rs 100 will be deducted as Account Maintenance Fee and if account balance became Nil the account shall stand automatically closed,” says the new rule.
{{/usCountry}}Rs 500 is the minimum deposit amount to open a saving account in post office, while the subsequent deposit should not be less than Rs 10. The minimum withdrawal amount is Rs 50. There is no maximum limit for deposit. No withdrawal is permitted that reduces the minimum balance below Rs 500.
If there is no transaction in an account for consecutive three financial years, then the account shall be treated as silent or dormant. Fresh KYC documents, passbook are to be submitted along with an application form to revive such accounts.