The government has made it mandatory for the use of savings account to deposit monthly, quarterly, annual interest in case of MIS, SCSS, Fixed Deposit. So if you are withdrawing the interest income earned on Post Office Monthly Income Account, Senior Citizen Savings Scheme and Fixed Deposit Accounts as cash, you will be 1 Will not be able to do this from April, 2022.
issued a new circular
According to the new circular of the Department of Posts, “Interest on MIS/SCSS/TD account will be credited only in the post office or bank account of the account holder from April 01. In case an account holder is not able to link his/her savings account with MIS/SCSS/TD accounts by 31.03.2022 and interest is credited in MIS/SCSS/TD Miscellaneous Office Accounts, then the outstanding interest will be paid only in PO Savings Account. or by credit by cheque. Interest payment in cash from MIS/SCSS/TD Miscellaneous Office Account will not be allowed.
Benefits of linking your savings account with MIS, TD, SCSS
a) Interest deposited in savings account deposit attracts additional interest if it is not withdrawn directly from MIS/SCSS/TD account.
b) Depositors can withdraw their interest without visiting the post office and can use it through various modes including electronic means.
c) There will be no need to fill multiple withdrawal forms for each MIS/SCSS/TD account.
d) Depositors can avail the facility of automatic credit of interest amount from their MIS/SCSS/TD accounts to RD accounts through PO Savings Account.