POST OFFICE SAVING SCHEMES

Post office saving schemes In India were introduced by the Central Government of the Country for the purpose of savings and investment for the citizens of India. There are a variety of saving schemes available in the post office that offer sovereign grantee which is backed up by the central government. These are also small saving schemes.

Types of Saving Options in the Post Office Saving Scheme

There are various post office saving options available such as:

1. Savings Account (SB)
2. Recurring Deposit (RD)
3. Time Deposit (TD)
4. Monthly Income Scheme (MIS)
5. Senior Citizen Saving Schemes (SCSS)
6. National Saving Certificate (NSC)
7. National Pension Scheme (NPS)
8. Jansuraksha Scheme
9. Mutual Funds

Who Can Open Account?

A post office saving account can be opened by
(i) An adult above the age of 18.
(ii) Joint Account for a maximum of 2 adults can be opened and maintained.
(iii) An account can be opened for a minor above the age of 10 years.
(iv) A guardian on behalf of a minor/Person of unsound mind.

Documents Required to Open Account

The following documents are required to open the account:

1. Account Opening Form (AOF)
2. Deposit Slip with minimum account deposit of Rs. 500/-
3. ID proof such as Pan Card, Electoral Photo Identity Card, Ration Card with the photograph, Driving License, Post office identity card, POSB identity Card, Photo identity card issued by recognized university/education board/college or institute, the letter issued by UIDAI containing name, address, and Aadhar number.
4. Address proof such as Aadhar, Election id, Passport, Electricity or Telephone bill of last 3 months, ration card with current address, bank or post office passbook with current address, salary slip of reputed employer with address, the letter issued by UIDAI containing name, address, and Aadhar number, etc.
5. Recent passport size photograph. In the case of the joint account, a passport size photograph is required for both individuals.
6. All documents are required to be self-attested by the applicant. In the case of an illiterate individual, the documents need to be attested by a Gazetted officer, Branch / Sub / Chief or Head postmaster, Sarpanch or Gram Dak Sewak Delivery Agent. The documents are also required to be attested by the agent in case the investment is made through the agent.

Facilities Available with Post Office Saving Account

1. ATM facility and Cheque facility is available for account holders to withdraw cash.
2. The account holder can nominate a family member at the time of opening the account or at any point later until the account is operational.
3. Mobile Banking and Net Banking facility are also available for account holders.
4. With the use of net banking facility and mobile banking facility or banking through the post office, the account holder can transfer funds between Post Office Savings Accounts, check account balance, generate stop payment requests, view transactions, etc.
5. The account holder can link the Post office saving account with the IPPB Saving account.
6. Funds Transfer (Sweep in/Sweep out) facility is available with IPPB Saving Account.\From FY 2012-13, the interest earned on Post Office Saving Scheme is made Tax Free up to INR 10,000/-.

Here are the few more things you need to know about the Post Office Saving Scheme

1. The account can be opened by an individual in any of the local post offices with a minimum deposit of Rs. 500/-.
2. The account can be opened only upon payment of the cash amount of the minimum deposit.
3. The account balance should not be lower than Rs. 500/- at any given point in time.
4. A maintenance fee of Rs. 100/- is deducted on the last working day of each financial year in case the minimum balance is not maintained.
5. In order to keep the account active, the account holder needs to make at least one transaction in three financial years.
6. The account shall be automatically closed if the balance is zero.
7. Only one account for everyone is allowed in one post office.
8. In case of relocation of the account holder, the account holder can transfer the account from one post office to another.
9. If the account is opened for a Minor, upon attaining the age of maturity the account can be transferred to his or her name.

Closure of Account – Withdrawal or Death

Depending upon the type of account being operated, the account can be closed by the account holder himself or upon his death by a family member.

In case of death, the following documents are required:

1. If the deceased account holder had made a nomination, the legal heir shall submit a nomination claim form along with a copy of the Death Certificate and KYC documents.
2. If there is no nomination made by the deceased account holder and the claim amount is less than 5 Lakhs, the legal heir shall submit a claim form, death certificate, KYC documents, Annexure-I (Letter of Indemnity), Annexure-II(Affidavit)  and Annexure III (Letter of disclaimer of affidavit) of the claimant, deponents,  witnesses, sureties, etc.
3. If the deposit value is above 5 Lakhs and no nomination has been made by the account holder, the claim shall be settled only through Succession Certificate after 6 months of the death of the depositor.