258029 SIP myths you must know!

The ministry of finance has issued a notification which details the specific people who can open zero-balance account in a post office. The zero-balance account can be opened by any individual who is a registered adult number of any government welfare scheme or by the legal guardian of the minor who is registered under any government welfare scheme.

It is pertinent to note that an eligible individual can have only one zero balance basic savings account. The account can be used to avail the government benefits like subsidies, pension, scholarship, etc.

As of now, a basic savings post office account requires the user to maintain a minimum balance, which is currently Rs 500. In a normal basic savings account, if a user fails to maintain this minimum amount, extra charges are levied.

There are many banks that provide the facility of a zero balance account under Jan Dhan Yojana Scheme. Such bank accounts are bound with certain limitations. For example, these accounts can maintain maximum balance of Rs 50,000 and maximum Rs 10,000 can be withdrawn in a month. Also, the total number of deposits in a financial year must be less than or equal to Rs 1,00,000.

However, the post office savings account do not come with any such restrictions. The basic savings account in post office offers easy banking facilities and that too at your doorsteps. The user also gets an interest rate of 2.75% per annum on daily balance. The individual receives the interest quarterly.

Like other banks, it also gives the facility of free monthly e statements and mini statements through SMS banking. It is one of the safest option for keeping your money as it is backed by the government. The interest rates get updated by the ministry of finance quarterly.