A post office savings account is classified as silent or dormant when no deposits or withdrawals are made for three consecutive financial years.
In an effort to promote savings with minimal hassle, post office savings accounts have become a reliable and convenient option. These accounts not only provide a secure space for money but also offer an opportunity to earn interest without being burdened by hefty fees or stringent minimum balance requirements.
Understanding Silent Accounts in the Post Office: It’s crucial to be aware of the concept of a “silent account” in the post office. An account is considered silent or dormant when there are no deposits or withdrawals for three consecutive financial years. However, reviving such an account is a straightforward process. To reactivate a dormant account, individuals need to submit an application along with fresh Know Your Customer (KYC) documents and their passbook to the relevant post office.
Key Features of Post Office Savings Accounts: Minimum Opening Amount: A modest sum of Rs 500 is all that is required to open an account, making it accessible for a wide range of savers.
Interest Rate: As of November 30, 2023, the post office savings account offers an attractive interest rate of 4 percent per annum on individual and joint accounts.
Eligibility to Open a Post Office Savings Account: The flexibility of post office savings accounts extends to account holders. These accounts can be opened by:
- Single Adults: Individuals managing their finances solo.
- Two Adults: Joint A or Joint B option, allowing two adults to jointly operate the account.
- Guardian on Behalf of a Minor: For parents or guardians securing the financial future of a minor.
- Guardian on Behalf of a Person of Unsound Mind: Providing support for those who may need assistance in managing their finances.
- Minors Above 10 Years: Empowering young savers, allowing minors above the age of 10 to have an account in their name.
