What is the difference between bank and post office?
Table of Contents
What is the difference between bank and post office?
Answer: The main purpose of bank is to provide financial service to its customers, while that of post office is to provide mailing services to its customer. Answer: Post Offices On the other hand, post offices have traditionally been used to make available mailing services to common people.
Is post office considered a bank?
Why are Post office savings banks not treated as banks? Solution not provided. Because they do not perform bank’s essential function of lending.
Why is bank better than post office?
Even the time deposits of the post office are much better, if you consider a medium to longer term duration. The 5-year deposit in the post office fetches an interest rate of 6.8\%, compared to a maximum of 5.5\% offered by some of the larger banks in the country.
Is post office savings account better than bank?
A savings account is insured up to Rs. 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC), Ministry of Finance. Apart from a bank, you can also open a savings account under the Post Office. A savings account of a Post Office attracts better interest rates than bank savings accounts.
Which is more safe bank or post office?
Safety. Since the post office schemes are backed by the Government they are very much safe. The same cannot be said about banks. Deposits in banks are insured only up to a sum of Rs 5 lakhs only.
Which is the best account in post office?
Post Office Savings Account(SB)
Who runs the post office bank?
Bank of Ireland
Many Post Office Money branded products are provided by Bank of Ireland (UK) plc with Post Office Ltd acting as an appointed representative and credit broker….Post Office Money.
| Type | Trading name |
|---|---|
| Area served | United Kingdom |
| Products | Credit cards Current accounts Mortgages Personal loans |
| Owner | HM Government |
Why did USPS stop banking?
But when President Lyndon Johnson sought to streamline the federal government, USPS banking was abolished. Banks had already started to leave some poor and rural areas by the 1960s, so the departure of postal banking left a gap ripe for payday lenders to establish strong footholds in those communities.
Is post office safer than bank?
The postal department offers many saving schemes including good interest rates on Fixed Deposits. The deposited money remains safe as the government provides security. Availing the FD facility in post office banks is very easy. Government of India guarantee is given on FD in the post office.
What are the benefits of opening a post office account?
Interest earned is tax free up to Rs 10,000 per year. Income tax relief is available on the amount of interest under the provisions of section 80L of the Income Tax Act. The account can be transferred from one post office to another. Single accounts can be converted to joint accounts and vice versa.
What is the benefits of post office account?
The post office savings account is a deposit scheme provided by the post office throughout India. The account provides a fixed interest rate on the account balance. It is a beneficial scheme for individual investors who wish to earn a fixed rate of interest by investing a significant portion of their financial assets.
How safe is my money in post office?
The deposited money remains safe as the government provides security. Availing the FD facility in post office banks is very easy. According to the postal department, a user can avail the FD facility with 1,2, 3 and 5 years of maturity.