Government has made it mandatory to use savings account for depositing monthly, quarterly, annual interest in case of MIS, SCSS, Fixed Deposits. So if you are deducting the interest income earned on Post Office Monthly Income Account (MIS), Senior Citizen Savings Scheme (SCSS) and time deposit Accounts in the form of cash, you will not be able to do so from April 1, 2022.
As per the latest circular of the Department of Posts, “Interest on MIS/SCSS/TD accounts will be credited only to the PO Savings Account or Bank Account of the account holder with effect from 01.04.2022. If an account holder is not able to link his/her savings account with MIS/SCSS/TD accounts by 31.03.2022 and interest is credited to MIS/SCSS/TD Miscellaneous office accounts, then the outstanding interest will be paid only through credit Should be done in PO Savings Account or by Cheque. Interest payment in cash from MIS/SCSS/TD Miscellaneous Office Account will not be allowed with effect from 01.04.2022.”
Benefits of linking your savings account with MIS, TD, SCSS
a) Interest deposited in savings account attracts additional interest if it is not withdrawn directly from MIS/SCSS/TD account.
b) Depositors can withdraw their interest without visiting the post office and can use it through various modes including electronic means.
c) Avoiding the need to fill multiple withdrawal forms for each MIS/SCSS/TD account.
d) Depositors can avail the facility of automatic credit of interest amount from their MIS/SCSS/TD accounts to RD accounts through PO Savings Account.
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