Post Office Savings Account: Changes from 1st April that you can't afford to miss
Post Office Savings Account: As we are about to enter the new financial year from 1st April 2021, there are various changes that are going to impact investment goals and post office savings schemes are one of them.
Post Office Savings Account: As we are about to enter the new financial year from 1st April 2021, there are various changes that are going to impact investment goals and post office savings schemes are one of them. According to the latest India Post update, money withdrawal from a post office account has been limited to just four transactions. In case of more than four withdrawals, one will be charged 0.05 per cent of the net amount withdrawal on every transaction beyond the given limit.
Speaking on the changes in post office savings account from next financial year, SEBI registered tax and investment expert Jitendra Solanki said, "For the basic savings account at India Post, charges shall be: for withdrawal of cash four times in a month, there shall be no charge. And thereafter every transaction will be charged Rs 25 or 0.5 per cent of the total amount withdrawn. No charges shall apply for making a deposit."
India Post saving, current account charges
For savings and current account, Solanki said that no charges shall be levied on withdrawing Rs 25,000 monthly. And thereafter, every withdrawal shall attract a minimum of Rs 25 or 0.5 percent of the total amount withdrawn. If you make a cash deposit up to Rs 10,000 in a month, then there will be no charge. But a deposit of over that amount shall attract a minimum of Rs 25 on every post office savings account deposit.
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Indian Post Savings Account: Withdrawal limit increased for GDS Branches
Also, another point to note is that to provide reliefto the rural post office savings account holders, India Post has announced that it shall hike the withdrawal limit at Post Office GDS (Gramin Dak Seva) Branches. And now the limit has been hiked from Rs 5000 to Rs 20000 per customer. The move is aimed at increasing post office deposits over time.
For an India Post savings account, the minimum required amount that needs to be maintained is Rs 500 and if the minimum criteria is not met, Rs 100 shall be deducted as Account Maintenance Fee. Further if there is no balance, the account shall be automatically terminated.
India Post AePS account charge
On the IPPB network, there are unlimited free transactions but for non-IPPB (India Post Payment Bank), the number of transactions allowed for free are capped at 3. The rule is for mini statements, cash withdrawal and depositing cash. After the free limit in AePS is over, a charge will have to be given on every transaction.
Once the threshold is exhausted, any deposit shall be charged at Rs 20. To get a mini statement, you have to pay Rs 5. If funds are transferred after the limit is over, the 1 per cent of the transaction amount will be charged, which will be a minimum of Rs 1 and a maximum of Rs. 20. GST and Cess will also be levied on these charges.
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