A financial savings account set up at work (PO) is one of the best known and most accessible financial savings accounts within the country. Additionally, under Part 80TTA of the Income Tax Act, a PO account is eligible for a curiosity tax exemption of up to ₹10,000 (for all mixed financial savings accounts) earned in 12 monetary months.
Here’s what you might want when it comes to the PO account:
Eligibility: One adult only or two adults only; a minor aged 10 years minimum; a guardian on behalf of a minor; and a guardian on behalf of an individual with erroneous thoughts.
Interest rate: Currently, an interest rate of 4% each year is provided for this account. Curiosity will be calculated on the idea of minimum stability on the tenth and last day of each month. If, throughout this era, constancy falls under ₹500, then no curiosity will be credited.
Deposit and withdrawal: While a minimum deposit amount is ₹500, the minimum withdrawal amount is ₹10. However, there is no limit for the maximum amount that can be withdrawn. In addition, any withdrawal that may cause the minimum quantity to drop below ₹500 will not be allowed.
At the end of each monetary year, the stability of the account must be at least ₹500 or ₹50 will be deducted as an account maintenance fee. The account will be closed automatically if the stability becomes zero.
Silent account: If there have been no transactions from an account for 3 successive monetary years, it will likely be considered silent/dormant. Re-opening requires submitting a utility with recent Know Your Buyer (KYC) documents and relevant set up workplace booklet.
Different services available: Electronic Check, ATM Card, Internet Banking / Cellular Banking, Seeding Aadhaar, Atal Pension Yojana (APY), Pradhan Mantri Suraksha Beema (PMSBY) and Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY).
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