POMIS, SCSS, Holder of a term account? Payment of interest in cash will no longer be authorized from this date.
Going forward, payment of cash interest will no longer be allowed from the Monthly Income Scheme, Seniors Savings Scheme Account, or Term Deposit Accounts.
Account linked to the post office: If you withdraw interest income earned on MIS, SCSS and post office term deposit accounts in the form of cash, you may not be able to do so from April 1, 2022. The government has made mandatory use of savings account for credit. monthly, quarterly, annual interest in case of MIS, SCSS, term deposit accounts.
As an investor in small savings schemes such as Monthly Income Scheme (MIS), Senior Citizens Savings Scheme Account (SCSS) or Time Deposit Account, it is mandatory to open a PO savings account or bank account. If depositors already have a savings account, it should be linked to MIS, SCSS and TD accounts.
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Interest on MIS, SCSS, term deposit accounts will only be credited to the PO savings account or account holder’s bank account from 01.04.2022. In the event that an account holder is unable to link the savings account with MIS, SCSS, term deposit accounts until March 31, 2022, unpaid interest will be paid only by credit to the account. savings PO or by cheque.
Cash interest payment will not be allowed from the Monthly Income Scheme (MIS), Savings Account for the Elderly (SCSS) or Time Deposit Account from 01.04.2022.
Under the 5-year Monthly Income Scheme (MIS) payment of interest is only on a monthly basis, while under the 5-year Older Persons Savings Scheme (SCSS) account the payment interest is on a quarterly basis. In a term account, the interest payment is made only on an annual basis.
Process to link savings account to MIS/SCSS/TD accounts:
postal savings account: In the case of a postal savings account, the account holder can benefit from the possibility of automatic transfer (standing instruction) for the linking of MIS, SCSS and term deposit accounts.
The PO savings account or bank account, in which the interest payment is desired by the depositor of MIS, SCSS, term deposit accounts, can be either a single account or a joint account in which the depositor of MIS , SCSS, term deposit accounts must be a savings account depositors or guardians.
Bank account: In the case of a bank account, the depositor must submit the ECS mandate form together with a void check or a copy of the first page of the bank account passbook for the interest amount to be credited.
Deposits in post offices MIS, SCSS, term deposit accounts provide regular income on a monthly, quarterly or yearly basis. However, some depositors do not receive interest income from these investments and the money remains unpaid in the postal account. Undrawn interest earns no interest if depositors have not linked their savings account to their monthly/quarterly/annual interest credit.
Benefits of linking savings account to MIS/SCSS/TD accounts:
a) Interest credited to savings accounts will earn additional interest, if interest is not withdrawn directly from MIS, SCSS, term deposit accounts.
b) Depositors can withdraw the interest due without going to the post office and use it through various electronic means.
vs) Filling multiple withdrawal forms for each MIS, SCSS, Time Deposit account can be avoided.
D) Depositors can enjoy automatic credit of interest amount from their MIS, SCSS, Term Deposit Accounts via PO Savings Account to Recurring Deposit (RD) Account.