New Rules Of who invest in post office small savings schemes April 2022

New Rules Of who invest in post office small savings schemes April 2022

This news is important for those who invest in post office small savings schemes.  From 1st April 2022, you will not be able to withdraw interest earned on Post Office Monthly Income Scheme (POMIS), Senior Citizen Savings Scheme (SCSS) and Term Deposit Accounts in cash.  The government has made it mandatory to use savings accounts for monthly, quarterly, annual interest deposits in case of MIS, SCSS, time deposit accounts. 

New Rules Of who invest in post office small savings schemes April 2022


 Account or bank account must be opened. Interest on MIS, SCSS, TD accounts will be credited only to the account holder's post office savings account or bank account from April 1, 2022.  If an account holder is unable to link the savings account with MIS, SCSS, time deposit accounts by March 31, 2022, the remaining interest will be paid by credit or check only to the PO savings account.


 According to the report, from April 1, 2022, interest payments in cash from monthly income plan, senior citizen savings scheme account or time deposit account will not be allowed.


 When interest is paid

 Under a 5-year monthly income plan (MIS), interest is paid on a monthly basis only, whereas in a 5-year Senior Citizen Savings Plan account (SCSS), interest is paid on a quarterly basis.  Interest is paid on time deposit account only on an annual basis.


 The process of linking savings account with MIS / SCSS / TD accounts-


 Post Office Savings Account - In case of Post Office Savings Account, the account holder can avail automatic transfer facility for linking MIS, SCSS, Time Deposit Accounts.


 Bank Account - In case of bank account, the depositor has to submit the canceled check or ECS mandate form along with the first page copy of the bank account passbook to deposit the amount of interest.

 Advantages of linking savings account with MIS / SCSS / TD account-

 If interest is not deducted directly from MIS, SCSS, time deposit accounts, additional interest will be charged on interest deposited in the savings account.

 Depositors can earn interest without visiting the post office and use it through various electronic means.

 Multiple withdrawal forms can be avoided for each of the MIS, SCSS, time deposit accounts.

 Depositors can avail automatic credit facility of interest amount in Recurring Deposit (RD) account through Post Office Savings Account from their MIS, SCSS, Time Deposit accounts.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. www.Tradtips.com suggests its readers to consult with their investment advisers before making any financial decision.)

Post a Comment (0)
Previous Post Next Post