Post Office Saving Account Calculator is here to calculate the future value of periodic savings over a fixed period for achieving your short term goal.
It is a general-purpose saving Account calculator, which requires some data like – Your Monthly Deposit Amount, Rate of Interest of Post Office (i.e. Presently 4%), Period (in No. of Months), interest Compounding Frequency. After calculation, you will get the Maturity Amount after a specified period and Effective yield in %.
Post Office Saving Account
A post office saving account is similar to a savings account in a bank. It is a safe instrument to park those funds, which you might need to liquidate fully or partially at very short notice. Post office savings accounts are especially suited for those living in rural and semi-rural areas where the reach of banks is very limited.
How to Open Post office Saving Account:
The account can be opened at any post office with a minimum balance of Rs. 20. Maximum of Rs. 1,00,000 for the single account holders and Rs. 2,00,000 for joint account holders can be deposited. There is no lock-in or maturity period. One can just walk into a post office, meet the clerk, complete the formalities and the account would be opened.
Salient Features of Post office Saving Account:
- Rate of interest 4.0% per annum
- Minimum amount Rs 50/- in case of non-cheque account, Rs.500/- in case of a cheque account.
- Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a joint account.
- Interest Tax-Free.
- Any individual can open an account.
- Cheque facility is available.
- Group Account, Institutional Account, other Accounts like Security Deposit account & Official Capacity account are not permissible.
Post Office Saving Calculator Variables:
This post office saving Account calculator uses five different investment variables that most of the calculator requires. These saving calculator variables are:
Monthly Deposit Amount: This is a fixed monthly amount that is invested in a saving scheme. This deposit amount varies from person to person and scheme to scheme.
Rate of Interest: The Rate of Interest is the variable of the saving calculator that appears as a percentage and is different for different types of saving options.
Period of Investment: The length of the investment or period for the investment in months is another factor that plays a major role in the saving calculator. The longer investment increases the compounding of the returns and hence greater rewards are generated.
Maturity Amount: The desired or required amount that an investor wants at the end of the investment life cycle is known as the final amount or maturity amount.
Effective yield: The effective yield is that variable of the saving calculator that appears as a percentage and is used to compare the effectiveness of different types of saving options. This saving variable matters the most to the investors.
How the Post Office Saving Account Calculator Works?
Anyone can calculate his saving returns from the post office saving account through an online saving calculator available on this page with high accuracy.
Following are the steps to calculate the saving returns through this calculator:
- Step 1: Enter the fixed monthly amount that he wants to deposit every month.
- Step 2: After this, fill the rate of interest that he gets from his bank or financial institution for the specified period. Different banks or financial institutions offer different rates of interest-based on the amount of investment and period of investment.
- Step 3: The next step that one has to follow is to select the period for saving in months. It depends on saving option requirement for which he wants to stay invested.
- Step 4: Thereafter choose the frequency of compounding. The frequency of compounding may be monthly, quarterly, half-yearly, or yearly.
- Step 5: After submitting all variables required by saving a calculator, one will get the final maturity amount for investment query with effective yield.