Cash payment rules on interest changing from April 1, here’s all Post Office Savings Schemes A/c holders must know

 


The Department of Post has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of Senior Citizen Savings Scheme, MIS and TD Accounts and the last date to do so is 31 March 2022.

New Delhi: Come April 1 and the rules related to crediting of interest payment on Senior Citizen Savings Scheme, MIS and TD Accounts is going to change.

The Department of Post has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of Senior Citizen Savings Scheme, MIS and TD Accounts and the last date to do so is 31 March 2022.

It said that interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office account w.e.f. from 01 April 2022. It further stated that in case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest 1s credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022. (Also read: State Bank of India shares 5 tips to ensure your ATM Safety –Check out)

The department of post in its circular has said that accounts holders of the Senior Citizen Savings Scheme (SCSS) who have not linked their savings account (either PO Savings Account or Bank account) for credit of their monthly/quarterly/yearly interest and Interest due in these accounts are left unpaid in sundry office account.

Further, the circular observed that MIS/SCSS/TD accounts holders will be able enjoy the following benefits by linking savings account (either PO Savings Account or Bank account) for interest payment.

a. Interest credited in savings account will earn additional interest, if interest is not withdrawn directly from MIS/SCSS/TD Accounts.

b. Depositors can withdraw due interest without visiting the post office and utilise the same through various electronic means.

c. Filling up of multiple withdrawal forms for each MIS/SCSS/TD account can be avoided.

d. Depositors may avail facility of automatic credit of interest amount from their MIS/SCSS/TD accounts through PO Savings Account to RD accounts.

You must note that the PO Savings Account or Bank Account, in which the interest payment is desired by the depositor of MIS/SCSS/TD Accounts, can be either single account type of the depositor(s) or joint account type in which the depositor(s) of MIS/SCSS/TD Accounts should be one of the depositors or guardians in savings account.

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