Interest on the Post Office Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSC) and term deposit will not be paid in cash. The Post Office therefore stressed that these account holders should link their postal savings or bank accounts to these accounts. The new rule came into effect on April 1, 2022.
In a notification, the department said, “Interest will only be credited to the account holder’s postal savings account or bank account. If the account holder is unable to link their savings account Under the Senior Citizen Savings Scheme, Monthly Income Scheme Accounts and Term Deposits, interest due shall only be paid by credit to a postal savings account or by cheque.”
How to link a bank account to an MIS/SCSS/TD account?
To link his bank savings account to the term deposit at the post office, the depositor must present an ECS form accompanied by a void check or a copy of the first page of the bank account passbook and the MIS account passbook /SCSS/TD for verification by the post office.
How do I link a postal savings account to MIS/SCSS/TD?
In the case of a Postal Savings Account, the account holder must submit Form SB-83 (Request to Use Automatic Transfer Capability (Standing Instruction) to Link MIS/SCSS/TD Accounts to their Account savings account with its MIS /SCSS/TD for such endorsement, and its Postal Savings Account passbook at the post office for authenticity verification purposes.
The government kept interest rates stable on various small savings schemes. Among the small savings schemes, Sukanya Samriddhi Yojana currently offers 7.6%, Senior Citizen Saving Scheme 7.4% and PPF 7.1%. On the other hand, SBI’s 5-10 year term deposits attracted interest rates of 5.50%. Interest rates for small savings plans are reviewed quarterly.
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