The increase in withdrawal limit would help Post Office Saving Schemes compete with banks and increase post office deposits in the long term.
In a good news for thousands of Post Office Savings Account holders, India Post has announced the raise in withdrawal limit at Post Office GDS (Gramin Dak Seva) Branches. As per India Post's announcement, the withdrawal limit per individual has been increased to Rs 20,000 from Rs 5,000. It is expected that the increase in withdrawal limit would help Post Office Saving Schemes compete with banks and increase post office deposits in the long term.
Experts maintained that India Post's move would prove beneficial in future and will help increase post office deposits. It is to be noted that post office deposits have plunged in the recent past.
Notably, banks allow withdrawal as per the bank debit cards of the savings account holders but it has often been seen that most of the ATMs don't dispense more than Rs 10,000 in one transaction in the rural area. So, India Post move might prove beneficial for those villagers who want to withdraw more than 10,000 in one ago.
Post office savings account interest rate is at 4 per cent per annum and the minimum amount withdrawal allowed in post office savings account is Rs 50. You can open Post Office Savings Account with minimum deposit of Rs 500. The minimum balance in Post office savings account is Rs 500.
Post office savings account interest rate calculation:
- Interest is calculated on the basis of minimum balance between 10th of the month and end of the month;
- No interest will be allowed in a month if balance between 10th and last day of the month falls below Rs 500
- Interest shall be credited in account at the end of each Financial Year at the interest rate prescribed by the Ministry of Finance;
- At the time of closure of account, interest will be paid up to the preceding month in which account is closed
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