Why are post offices savings banks not treated as banks?

Why are Post office savings banks not treated as banks? Because they do not perform bank’s essential function of lending.

Why is the post office not a bank?

Post offices and banks differ with the fact that bank advances loans whereas post office do not provide any service of loan though both of them accepts deposits. Answer: For post office postal services are main object while bank have financial services as it main object.

Why do people deposit money in the post office?

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.

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.

What are the advantages of post office?

Advantages of Postal Service: Assured and speedy delivery of goods is possible with the help of speed post service. Addressee receives the parcels at his doorstep. He doesn’t have to travel too far in search of his parcels. Such a convenient mode of transport can be used when quantity is small and volume is low.

What are the benefits of post office?

Post Office Savings Account(SB)​​​​

What are the benefits of post office savings account?

Using the debit card that is offered when opening the account, account holders can make withdrawals from any ATM across the country. Savings up to Rs. 10,000 inclusive of the interest are exempt for tax under section 80L of the Income Tax Act.

Is post office savings are safe?

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.

Is it good to save money in post office?

Post Office Saving Scheme: If you want to invest your money somewhere and don’t want to take any risk, then Post Office is the right option for you. Here’s one investment in which the risk is negligible and the returns are also good and Post Office Recurring Deposit is one of them as an investment avenue.

Is Post Office Saving safe?

https://www.youtube.com/watch?v=KS8AiNfvAxY