Post Office Savings Schemes: Here's Changes For MIS, SCSS and FD Account Holders From April

Interest credited to a savings account earns additional interest if it is not withdrawn directly from an MIS/SCSS/TD account

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New Delhi: Those who are investing in Post Office Monthly Income Schemes and term deposits, make sure that to link your post office savings account with these accounts. Coming April, the interest on Post Office monthly income scheme, senior citizen saving scheme or term deposit will not be given in cash but rather in the savings accounts.

In view of this, the department of Post has asked that account holders should link their post office savings account with these accounts to avoid any discrepancy in interest credit.

In a notification, the department said, "The interest will only be credited only in 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 Term Deposit accounts, the outstanding interest should be paid only through credit in post office savings account or by cheque."

What are benefits of linking savings account to MIS, TD, SCSS?

You should know that interest credited to a savings account earns additional interest if it is not withdrawn directly from an MIS/SCSS/TD account.

The interest can be withdrawn without the need to visit a post office and depositors can use the money in a variety of ways.

There is no need to fill out multiple withdrawal forms for each MIS/SCSS/TD account.

Depositors may avail of the facility of automatic credit of interest amount from their MIS/SCSS/TD accounts through PO Savings Account to RD accounts.

To facilitate automatic transfer to a Post Office Savings Account, the account holder must submit SB-83 Form, which is a Standing Instruction application. This will help you connect MIS accounts to your PO Savings Account. Also, remember to carry your MIS passbooks and Post Office Savings Account passbook to the post office for authentication.