New Delhi: Those who are investing in post office monthly income schemes and fixed deposits, make sure to link their post office savings account with these accounts. In the coming April, interest on Post Office Monthly Income Scheme, Senior Citizen Savings Scheme or Fixed Deposit will not be given in cash but in savings accounts.
In view of this, the Department of Posts has said that the 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, “Interest will be credited only to the account holder’s post office savings account or bank account. In case the account holder is not able to link his savings account with the Senior Citizens Savings Scheme, then to the monthly income scheme and fixed deposit accounts.” The outstanding interest should be paid only by depositing it in the post office savings account or by cheque.”
What are the benefits of linking savings account with MIS, TD, SCSS?
You must know that the interest deposited in the savings account attracts additional interest if it is not withdrawn directly from the MIS/SCSS/TD account.
The interest can be withdrawn without the need of going to the post office and depositors can access the money in various ways.
No need to fill multiple withdrawal forms for each MIS/SCSS/TD account.
Depositors can avail the facility of automatic credit of interest amount from their MIS/SCSS/TD accounts to RD accounts through PO Savings Account.
To facilitate automatic transfer to a post office savings account, the account holder needs to submit Form SB-83, which is a standing instruction application. This will help you to link MIS accounts with your PO Savings Account. Also, remember to take your MIS passbook and post office savings account passbook to the post office for authentication.