Post office schemes: According to a latest update, post offices will no longer pay cash interest on a number of schemes from April 1, 2022. According to a Mint report, the post office will no longer pay interest on the scheme Savings for Seniors, Monthly Income Scheme and Cash Term Accounts.Also read – Haven’t received your ITR refund? Find out why here
Interest will be paid directly to the accounts of those enrolled in these plans. To do this, account holders must link their savings accounts to the postal schemes. In case the accounts are not linked, the interest will only be paid after the link and will then be kept in the outstanding interest form. Also, account holders can get the interest by check. Also Read – Relook Rs 1,000 EPFO Monthly Pension, Revise ABRY Eligibility: Parliamentary Committee
The Postal Department circular read: “Interest due on these Senior Citizens Savings Scheme, Monthly Income Scheme and Time Deposit Accounts is not being paid on various office accounts. Additionally, it has been observed that many term account holders are unaware of the annual interest payment of TD accounts. » Also Read – What will happen if you don’t bind your PAN-Aadhaar by March 31st? Find out here
He continued, “For better control of the operations of the Postal Savings Bank, the promotion of digital transactions, the prevention of money laundering activities and as a preventive measure to avoid fraud, the competent authority has decided to compulsorily link either the postal savings account or the bank account”. to credit payment of interest from Citizens Savings Scheme, Monthly Income Scheme and Term Deposit Accounts. »
For the uninitiated, if interest is earned once on postage schemes, they can no longer earn interest. It should be transferred to a savings account in order to earn more interest.
To transfer the interest earned to the respective savings account, one must first link his account to the postal system. The post office also offers an automatic credit facility for the transfer of interest.