Why Every Farmer Must Open a Savings Account in Post Office; Read Benefits & Features

At present, almost all major banks have access to rural areas, due to which the interest of most people has been largely diverted from the post office to banks. But recently, the post office has launched various schemes with good interest rates to attract rural people. Actually, there are many benefits to opening a savings account in the post office. Hence, we will briefly tell you about the scheme being run by the post office and how you can avail of the big interest out of it.

Know the Scheme and Rate of Interest

If you save some money from your earnings every month and deposit it in the savings account of the post office, then you are given interest at a fixed rate. If you deposit money in the savings accounts of the post office, then the post office will provide 4 percent interest to you. This interest rate will be given on a small saving scheme.

National Savings Certificates Scheme

The National Savings Certificate is a fixed income investment scheme that you can open with any post office. A Government of India initiative, it is a savings bond that encourages subscribers – mainly small to mid-income investors – to invest while saving on income. If you invest in this scheme, you get the facility to save tax under section 80C and the money turned double as compared to banks.

Things to keep in Mind While you open a Savings Account

If you are thinking about opening a savings account in the post office, then you have to keep some things in mind-

Rate of interest: If you open a savings account, then it gets a 4 percent interest rate annually. This interest rate has been fixed for the third quarter of the current financial year.

The minimum investment for opening an account: The minimum investment for opening a savings account is 500 rupees.

Minimum transaction: The account holder needs to make about one financial transaction (deposit or withdrawal) in three financial years to run this account.

Income Tax: The interest of 10 thousand rupees found in the Post Office Savings Account has been completely tax-free.

Apart from post office, banks like also SBI also offers Small Savings Account for rural people including farmers with big benefits..