Post Office Savings Accounts - Now More attractive

SB ORDER NO  20/2011  - REMOVAL  OF  MAXIMUM LIMIT BALANCE in SB ACCOUNTS Major  Changes in  SB Accounts  from Post Office

Removal of ceiling of Rs.1 lakh  in single savings account and Rs.2 Lac in Joint Savings Account fixed in the year 2000

From 1.10.2011, there will be no limit for retaining balance in single as well as joint savings account.

A depositor or depositor(s) can deposit any amount into single as well as joint savings account

Maturity value of any savings instrument can be credited into savings account of the depositor standing in the same post office irrespective of the balance in the account.

From the Financial year 2011-12, Interest income of Rs.3500/- in the case of single account and Rs.7000/- in case of Joint account will be exempted from Income Tax

It is the duty of the depositor(s) to show the interest income earned from Post Office Savings Account(s) beyond the limit prescribed above in the Income Tax return and pay due Income Tax.

Features of  Savings Account 1. Any individual can open an account. 2. Cheque facility available 3. Account can be opened with a minimum of Rs. 50/- Minimum deposit for cheque account should be Rs. 500/- 4. Any amount can be drawn subject to keeping a minimum balance of Rs. 50 in simple and Rs. 500 for cheque facility accounts. 5. Interest rate applicable w.e.f. 1.3.2001 is 3.5 per cent / annum for general public 6. An account, not operated during three complete financial years, shall be treated as 'Silent Account'. For  more  help  and  to get  form for open a savings account  please click                                  INDIA POST