Linking of savings account with MIS, SCSS and FD accounts mandatory. Check latest date

New Delhi: One of the favorite investment tools of employees is the Postal Savings Plan because they offer a higher return compared to other term deposits and offer better interest rates. Now, investors in the monthly income account (MIS), the Savings Scheme for Senior Citizens (SCSS) and the Time Account Scheme will need to link their savings accounts or they will not be able to receive the interest earned.

The government has notified that depositors in the aforementioned plans will be required to use a savings account for monthly, quarterly and annual interest credit. Depositors receiving interest in the form of cash will no longer be able to do so from April 1, 2022.

The latest Circular from the Post Office stated: “Interest on GIS/SCSS/TD accounts will only be credited to the account holder’s account PO savings account or bank account from 01.04.2022. »

In the event that an account holder is unable to link their savings account with MIS/SCSS/TD accounts until March 31, 2022 and interest is credited to various MIS/SCSS/ TD, unpaid interest should be paid only via credit in the PO savings account or by check, he added.

The notice further stated that payment of cash interest would not be permitted from the miscellaneous office account of MIS/SCSS/TD from April 1, 2022.

Benefits of linking savings account to MIS, TD, SCSS

a) Interest credited to a savings account earns additional interest if not withdrawn directly from an MIS/SCSS/TD account.

b) Depositors can withdraw their interest without having to visit a post office and can use it in various ways, including electronic means.

c) Avoid having to complete multiple withdrawal forms for each MIS/SCSS/TD account.

d) Depositors can benefit from the automatic credit facility of the interest amount from their MIS/SCSS/TD accounts through the PO savings account to the RD accounts.