The basic savings account in the post office refers to a standard savings account that offers basic features such as deposits, withdrawals, and interest accrual. On the other hand, savings in the post office can encompass various types of savings products like time deposits, recurring deposits, and fixed deposits, each with specific terms, interest rates, and maturity periods.
Detailed response to the query
As a financial expert with practical knowledge and experience, I can provide a detailed answer to the question: What is the difference between savings and basic savings account in the post office?
Savings accounts, in general, are financial products that allow individuals to deposit and store their money while earning interest on the balance. They are typically offered by banks, credit unions, and post offices. On the other hand, a basic savings account in the post office specifically refers to a standard savings account that offers fundamental features such as deposits, withdrawals, and interest accrual.
The main difference between savings and basic savings account in the post office lies in the scope of products and services offered. Savings in the post office can encompass various types of savings products, including time deposits, recurring deposits, and fixed deposits, each with specific terms, interest rates, and maturity periods.
Time deposits, also known as certificate of deposits (CDs), are a type of savings product where you deposit a specific amount of money for a fixed period of time at a predetermined interest rate. These deposits are meant to be held until maturity, and withdrawing funds before the maturity date may result in penalties.
Recurring deposits, as the name suggests, allow individuals to regularly deposit a fixed amount of money on a monthly basis into their savings account. This type of account is suitable for those who want to save regularly and earn interest on their deposits.
Fixed deposits, sometimes also called term deposits, involve depositing a lump sum of money for a predetermined period of time at a fixed interest rate. These deposits often offer higher interest rates compared to regular savings accounts or basic savings accounts.
To illustrate the difference between savings and basic savings accounts in the post office further, the following table provides a comparison:
|Account Type||Features||Interest Rates||Maturity Periods|
|Basic Savings||Deposits, withdrawals||Varies depending on post office||N/A|
|Time Deposits||Fixed deposit, fixed term||Determined by post office||Set period|
|Recurring Deposits||Regular monthly deposits||Determined by post office||Specified term|
|Fixed Deposits||Lump sum deposit, fixed term||Determined by post office||Set period|
In order to emphasize the importance of saving, I would like to share a quote from Warren Buffett, a renowned investor: “Do not save what is left after spending; instead, spend what is left after saving.” This quote highlights the significance of prioritizing savings and the value of utilizing various savings products to grow your wealth.
Interesting facts about savings accounts in post offices:
- The post office savings scheme in many countries has a long history, dating back to the 19th century.
- Post offices often offer competitive interest rates on their savings accounts, making them an attractive choice for many individuals.
- In some countries, post office savings accounts benefit from government guarantees, providing additional security for depositors.
- Time deposits in post offices can offer higher interest rates than basic savings accounts, making them a preferred choice for those looking to maximize their returns.
- Recurring deposits provide a disciplined approach to saving, as individuals commit to regular deposits over a specified period.
In conclusion, while the basic savings account in the post office offers the core features of a savings account, savings in the post office can encompass a range of additional products with specific terms, interest rates, and maturity periods. Considering your financial goals and preferences, exploring different savings options available at the post office can help you make the most of your savings while achieving your financial objectives.
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This savings account has all the features and benefits offered by the Regular Savings Account (except that it allows only four cash withdrawals in a month). The aim of the basic savings account is to provide primary banking services at a very nominal charge.
A regular savings account is an interest-earning deposit account provided at the bank. A post office savings account is similar to the regular savings account which can be opened at the post office. The funds invested in the post office savings account also accumulate interest on all investments made by the account holder.
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Additionally, What is basic savings account in post office?
In reply to that: Service Charges / Fees for Basic Savings Account
|Eligibility||Anybody above 10 years with KYC|
|Annual Interest Rate||Balance up to INR 1 Lakh – 2.00% Balances above INR 1 Lakh & up to INR 2 Lakh – 2.25%|
|Account Statement||Free Monthly e-statement**|
Also question is, What are the types of savings account in post office?
Response: Types of Post Office Savings Schemes Accounts
Post Office time deposit account (TD) Post Office recurring deposit account (RD) Post Office monthly income deposit account (MIS) Public Provident Fund account (PPF)
Keeping this in view, What are the three 3 types of savings accounts?
Response will be: Types of savings accounts
- Regular savings account: earns interest and offers quick access to funds.
- Money market account: earns interest and may provide check-writing privileges and ATM access.
- Certificate of deposit, or CD: usually has the highest interest rate among savings accounts, but no access to funds.
Also asked, What is the benefit of a basic savings account?
In addition to earning interest, money in a deposit savings account is readily available. One of the biggest advantages of a savings account is that your money is fully accessible to you. You have access to your money through an ATM, online banking, our mobile app, or a transaction with a teller at one of our branches.
Moreover, Can a regular savings account be linked to a posa?
The response is: A regular savings bank account in IPPB can be linked to the Post Office Savings Account (POSA). Want to open a savings bank account at the post office? For opening a regular savings account, you have two options. India Post Payments Bank – which was launched last week – and India Post offer regular savings accounts to retail customers.
Also asked, What are the features and interest rates on post office savings schemes? Answer will be: Here are the features and interest rates on post office saving schemes. The savings account provided by the Post Office Savings Bank is one of the government-backed schemes, and offers 4.0% interest rates on both individual and joint accounts. Some of its features include:
How to open a post office savings account? The reply will be: Accounts can be opened instantly through their respective mobile apps just by providing details like Aadhaar number with KYC verification. Accounts can be opened after filling a post office savings account application form and submitting the required KYC documents – identity and address proof. Accounts can be opened with a minimum deposit of Rs 20.
In this regard, What are the features of a savings bank?
As an answer to this: Some of its features include: The savings bank offers a single account, joint account (up to two adults), a guardian or parent of a minor and/or of a person of unsound mind; and even under the name of a minor above 10 years of age. Application forms can be downloaded from the department of posts’ website, or at the nearest post office.
Also asked, Can a regular savings account be linked to a posa? As an answer to this: A regular savings bank account in IPPB can be linked to the Post Office Savings Account (POSA). Want to open a savings bank account at the post office? For opening a regular savings account, you have two options. India Post Payments Bank – which was launched last week – and India Post offer regular savings accounts to retail customers.
In this way, Does post office money offer a savings account?
Post Office Money® offers a broad range of savings accounts with interest rates up to 4.2%. An established and reputable brand with a large nationwide branch presence Account management and banking services are basic compared to other providers
Similarly, What are the disadvantages of post office savings?
Response: However, the disadvantage with post office savings is that that in the age of convenience banking, you will have to visit the post office every month. In case of banks, the amount is automatically debited from your account. Premature withdrawal, however, cannot earn you desired returns. In post office RDA,…
Simply so, What are the different types of IPPB savings accounts?
The response is: Here, we look at the three different kinds of IPPB savings accounts – regular, digital and basic saving account. Minimum balance: The account can be opened with zero balance unlike a post office savings account that requires minimum of Rs 20. Further, there is no requirement to maintain a monthly average balance in the account.