The Post Office has decided that interest earned on Monthly Income Scheme (MIS), Senior Citizen Saving Scheme (SCSC) and Term Deposit Scheme will no longer be given in cash. These customers have been advised by the post office to link their bank accounts with these accounts. The new rule has come into effect from April 1, 2022.
The post office has said in its notification, ‘The interest money will now be transferred to the post office savings account or bank account only. In case the bank account is not linked, the interest money will be transferred through post office savings account or cheque.
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How to link your bank account
To link your post office time account with bank savings account, you have to submit the ECS form. Along with this, a canceled check or a photocopy of the first page of the passbook will have to be submitted. At the same time, if you have a post office savings account, then you can also link it through SB-83 form.
The Government of India had decided not to change the interest rates of small savings schemes like Sukanya Samriddhi Yojana this time also. At present, 7.6% interest is available on Sukanya Samriddhi Yojana, 7.4% on Senior Citizen Saving Scheme and 7.1% on Public Provident Fund Scheme.