Post Office Scheme: Post Office will no longer pay interest rates on Senior Citizen Savings Scheme, Monthly income scheme and term deposit accounts in cash
Post Office Schemes: According to a latest update, the post offices will no longer pay interest in cash on a number of schemes from April 1, 2022. According to a report by Mint, the Post Office will no longer pay interest rates on Senior Citizen Savings Scheme, Monthly income scheme and term deposit accounts in cash
The interest will be paid directly in the accounts of the people enrolled in these schemes. For this, the account holders need to link their savings accounts with the post office schemes. In case the accounts are not linked, the interest will be paid only after the linking and it will be kept in the outstanding interest form will then. Also, the accountholders can get the interest via cheque
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The circular by the Department of Posts read, “The interest due in these Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts are left unpaid in sundry office account. Further, it has been observed that many term account holders are not aware of annual interest payment of TD Accounts.”
It continued, “for better control over Post Office Savings Bank operations, promotion of digital transactions, prevention of money laundering activities and as a preventive measure to avoid frauds, the competent authority has decided for mandatory linking of either post office savings account or bank account for crediting of interest payment of Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts.”
For the unversed, if the interest is earned on the post office schemes once, it cannot earn any more interest. It needs to be transferred to a savings account in order to get more interest.
For transferring the earned interest to the respective savings account, one has to first link their account with the post office scheme. The post office also provides an automatic credit facility for the transfer of interest.
