Post office savings schemes: How to link your bank account with Monthly Income Scheme (MIS),, SCSC and term deposit
PremiumPost Office savings schemes: What changes for MIS, SCSS and FD account holders from tomorrow
The interest on Post Office Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSC) and term deposit will not be handed out in cash. The department of Post, hence, emphasised that such account holders should link their post office savings or bank accounts with these accounts. The new rule came into effect on 1 April 2022.
In a notification, the department said, "The interest will only be credited only in the account holder's post office savings account or bank account. In case the account holder is not able to link his/her savings account with Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts, the outstanding interest should be paid only through credit in post office savings account or by cheque."
How to link a bank account with an MIS/SCSS/TD account?
To link one’s bank savings account to the post office time deposit, the depositor should submit an ECS form along with a cancelled cheque or a copy of the first page of the bank account passbook and the MIS/SCSS/TD account passbook for verification by the post office.
How to link a post office savings account with MIS/SCSS/TD?
In the case of Post Office Savings Account, the account holder shall submit the SB-83 Form (Application for availing the facility of automatic transfer (Standing Instruction) for linking of MIS/SCSS/TD accounts to his PO Savings Account along with his MIS/SCSS/TD accounts passbook for such an endorsement, and his Post Office Savings Account passbook to the post office for the purpose of verifying authenticity.
The government has maintained interest rates steady on various small savings schemes. Among the small savings schemes, Sukanya Samriddhi Yojana currently offers 7.6%, Senior Citizen Saving Scheme 7.4% and PPF 7.1%. On the other hand, SBI's 5-10 year fixed deposits attracted 5.50% interest rates. Interest rates for small savings schemes are reviewed on a quarterly basis.
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