Post Office Minimum Account Balance: Minimum Rs 500 Balance Is Mandatory Or Pay Fine

In case you don’t have an account balance of up to Rs 500 at the end of financial year Rs 100 will be deducted as Account Maintenance Fee and if account balance becomes zero the account shall stands automatically closed.

For post office savings bank account holders, here’s an update! From December 12^th onward, you will have to maintain a minimum balance of Rs 500 to avoid maintenance charge. The information was updated by the India Post in its official Twitter handle. Besides that the message was also sent to its savings account customers.

The Department of Post has said that maintaining a minimum balance in Post Office Savings Account is now mandatory. "Maintain a minimum balance of ₹500 in your savings account. Assure your savings account has a minimum balance amount by 11th December, 2020, failing which maintenance charge ₹100 plus GST will be deducted from your account."

At present, Post office savings accounts offer 4% per annum while the minimum amount required for account opening is Rs 500.

What does it mean for customers?

In case you don’t have an account balance of up to Rs 500 at the end of financial year Rs 100 will be deducted as Account Maintenance Fee and if account balance becomes zero the account shall stands automatically closed.

You should know that the interest is calculated on the basis of minimum balance between 10th of the month and end of the month and allowed in whole rupees only. In fact, no interest will be allowed in a month if balance between 10th and last day of the month falls below Rs 500.

Who can open a Post Office savings account?

An account in Post Office can be opened by a single adult, or jointly by two adults, or a guardian on behalf of a minor, or a guardian on behalf of a person of unsound mind, or by a minor above 10 years in his own name.

Note that only one post office savings account can be opened by an individual, besides only one account can be opened in the name of a minor or a person of unsound mind. The nomination is mandatory at the time of opening the Post Office Savings Account.