With effect from 1st April, 2022, post office The Department of Posts said in a circular, “Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit Accounts will stop paying interest in cash. Interest will be credited only to the account holder’s post office savings account or bank account. In case the account holder is not able to link his/her savings account with Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts, then the outstanding interest should be paid only by deposit or check in post office savings account.
The postal department said that some Senior Citizen Savings SchemeMonthly Income Scheme and Fixed Deposit account holders have not linked their savings account (post office savings account or bank account) for credit of their monthly/quarterly/annual interest.
“Interest payable in these Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts has been left unpaid in the Miscellaneous Office Account. Further, it has been observed that many term account holders are not aware of the annual interest payment of TD accounts.”
“As a preventive measure for better control over Post Office Savings Bank operations, promotion of digital transactions, prevention of money laundering activities and avoidance of frauds, the Competent Authority has made it mandatory for deposits to be made to Post Office Savings Accounts or Bank Accounts.” It has been decided to link Citizen Savings Scheme, Monthly Income Scheme and interest payment of fixed deposit accounts,” the circular stated.
It is to be noted that no interest is paid on the unscheduled interest of Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts. But the interest, if deposited in the savings account, will attract additional interest
The Department of Posts has urged senior citizen savings scheme, monthly income scheme and fixed deposit account holders to link their savings account (either post office savings account or bank account) for interest payment.
Also for the purpose of withdrawal of interest, filling up of multiple withdrawal forms for each senior citizen savings scheme, monthly income scheme and fixed deposit account can be avoided.
Depositors can also avail the facility of automatic credit of interest amount from their Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts to Recurring Deposit Accounts through Post Office Savings Account.
how to link post office savings account
In case of Post Office Savings Account, the account holder submits Form SB-83 (Application for availing the facility of Automatic Transfer (Standing Instruction)) for linking Senior Citizens Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts to his PO Savings Account. Will do Fixed deposit accounts passbook to support his senior citizen savings scheme, monthly income scheme and the like, and send his post office savings account passbook to the post office for the purpose of verifying authenticity.
how to link bank account
In case of a bank account, the account holder has to submit the ECS-1 form (ECS Mandate Form) along with a copy of the canceled check or the first page of the passbook of the bank account in which he wishes to deposit the interest amount with him. MIS/SCSS/TD Account passbook for such endorsement in the concerned post office.
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