The post office savings account holders have to pay a fine for not maintaining a minimum balance. The last date by which post office savings account holders is required to ensure that a minimum balance is maintained in their savings account is December 11, 2020. The minimum balance maintenance charge will be applicable after this date. An amount of Rs 100 will be charged from the account as an account maintenance fee if the minimum balance of Rs 500 is not maintained.
The account shall be automatically closed if the account balance becomes zero. The Post Office savings account can be opened by a single adult, or jointly by two adults. The minor can open the account on behalf of the guardian. The unsound mind person can also open the account with the assistance of the guardian. The interest to the customers should be credited to their account at the end of each financial year at the rate prescribed by the finance ministry.
India Post Office tweeted that maintaining a minimum balance in Post Office Savings Account now is mandatory. India Post alerted the same in a message to its savings account customers. The Central Government’s Department of Post announced that Post Office Savings Bank (POSB) customers will have to maintain a minimum balance of Rs. 500 in any savings account on any day. An individual can open only one post office savings account and the same rule applies to any guardian opening an account on behalf of a minor. The nomination is compulsory at the time of opening the Post Office Savings Account. The minor above ten years can open the account in his/her name.
The current interest rate being offered on an individual or joint Post Office Savings Account is 4 percent. The interest amount is calculated based on the minimum balance the customer maintains between the 10th of the month and the end of the month. According to the Post Office website, the customer will not get any interest in a month if the balance in the account is below Rs. 500 between the 10th and the last day of the month.