The post office savings account is a deposit scheme offered by the postal department that pays a fixed interest rate. It allows investors to deposit funds and earn 4% annual interest, which is tax-free up to Rs. 10,000. Account holders receive benefits like cheque facilities, ATM cards, ability to open minor accounts, portability between post offices, nominations, joint accounts, and electronic services. Tax exemptions are also provided under section 80L of India's income tax act.

1. POST OFFICE SAVINGS

2. DEFINITION
 The post office savings account is the
deposit scheme offered by the
department of post on which fixed
interest is paid.
 Investors deposit a good portion of their
financial assets in a postal savings
account in order to earn a fixed rate of
interest on the investment.

3. TYPES OF SAVING SCHEMES
 Recurring deposits account (RD)
 Monthly income account(MIS)
 National savings certificates(NSC)
 Public provident fund(PPF)
 Kisan vikas patra(KVP )

4. SALIENT FEATURES OF POST OFFICE SAVINGS
 Rate of interest is 4% per annum compounded
quarterly and payable annually.
 Minimum amount for opening the account is Rs.20/-
 Interest earned is tax free upto Rs.10,000/- per year
from financial year 2012-2013.
 Accounts can be transferred from one post office to
another.
 The account can be opened by cash only.

5. BENEFITS
 Cheque facility
 ATM/Debit card
 Minor accounts
 Portability
 Nomination
 Joint holdings
 Tax exemptions
 Electronic facilities

6. TAX BENEFITS
Income tax relief against the interest earned
from the savings in these accounts is
available under the provisions of section 80L
of income tax act,1961.