Link Your Post Office FD To Savings Account By 31 March

If you have a post office fixed deposit, then you should link it to your post office savings account or your bank account by 31 March 2022. From 1 April 2022, the post office department will credit the interest earned on deposits only to the bank account, the post office savings account, or by cheque. It will not pay any interest on post office time deposits in cash.

“Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022. In case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest is credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office account w.e.f. 01.04.2022,” the Department of Post said in a statement.

Post office time deposits fetch depositors earnings in the form of interest, which could be either in the form of monthly, quarterly or annual payouts. That said, many depositors are unware that the interest that is not withdrawn from their accounts do not fetch them any interest earnings.

Many depositors are yet to link their post office time deposits to their savings account (bank or post office savings account), the circular added.

How To Link Savings Account To Time Deposit 

The notification also mentioned how one could link his/her time deposit to his/her savings account. Where the depositor has a post office savings account, he should first submit form SB-83 Form, which serves as a standing instruction for automatic transfer. It will link the post office savings account to the time deposit account. In addition, the account holder has to carry along his/her time deposit account passbook as well as the post office savings account passbook for verification.

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 time deposit passbook for verification by the post office.

What Are PO Time Deposits

Post office time deposits are similar to bank fixed deposits and can be maintained for one, two, three, or five years. The interest is paid annually, but computed weekly. The minimum investment is Rs. 1,000. 

Like with every other government deposit scheme, the government announces the rate of interest at the beginning of each quarter of the fiscal year. The prevailing rate of interest for one-, two-, and three-year term deposits are 5.5 per cent annually. For five-year term deposits, the rate of interest is 6.7 per cent annually.