Since our father’s age we are fond of Post Office Savings Schemes. Whatever we say about equity or any newly launched alternative investments, but we have more faith in Post Office or Bank FDs. But when it comes to premature closure of these schemes, only few have idea about the rules. Let us learn those rules today.
Instead of going through product features, in this post I only concentrate on premature rules of each Post Office Savings Schemes.
1) 5 Yr Post Office Recurring Deposit–
This is actually a five year product. Currently you are getting 8.4% compounding quarterly. But if you want to withdraw then you can do so only after 3 years. In case you try to liquidate it before maturity of 5 years the interest payable on such premature will be of Post Office Savings Account which is applicable from time to time.
But an extended account (Account which was extended after 5 years) can be closed at any time without any penalty.
One withdrawal of 50% of balance allowed only after one year completion.
2) National Savings Certificate-
Even though on Post Office site they claimed “If your certificate is issued on or after 1st November 2011 then no premature encashment will be possible.”, but when you check this link, it states that there is possibility of withdrawal only on special cases which are mentioned as below.
In my view NSC is the only product which have less liquidity.
3) Post Office Monthly Income Scheme-
Here discount means deduction from the deposited amount.
4) Senior Citizen Savings Scheme-
Here discount means deduction from the deposited amount.
5) Post Office Time Deposits-
So there are the simple rules of premature withdrawal which you can use for liquidating any of your investments. Hope this information will be useful 🙂
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View Comments
Can a post office recurring deposit of 5 years be collected on maturity by a parent of the depositor if the person is abroad with a consent letter of the depositor.
Dear Annie,
Sadly NO.
Is there a provision to close a MIS account before 1 year locking period?
Dear Sarju,
Sadly NO.
Hi sir , my father n mother have joint MIS account of 900000. After staring mis in 10th month my mother pass away, but we didn't close police, agent say only fathers sign required at time of maturity.
But now my father is paralyzed so he can't do sign.
Now if we do KYC for thumb impression then it required both father and mother sign. Which is not possible.
Now police period was completed.
Then what to do. Plz guide.
Dear Lad,
Approach the concerned Post Office.
How settle RD death claim if only 6 months are deposited into account. Is it possible to close the account or wait for 3 years completion...
Dear Rao,
Yes, you can close it now too.
Hi sir,
I am postal assistant,
I have one doubt regarding SCSS PMC closure,
One SCSS PMC was done after 4 yrs before 5 yrs,
While closing reason code was taken as AB2, but still it recovered all the interests which was given by us till now.
Sol plz. I want to contact you sir, plz give a solution,
Call me plz, and save me
Dear Srinivas,
Hard to guide the internal official matter.
Dear sir,
I deposited in MIS post office. every year i withdrawl interest but at the end of maturity i forgot to withdraw interest and principal for about Six months .can I get interest for Last one year? What about that six month interest
Dear Viki,
In the case of MIS, the interest is payable on a monthly basis. Hence, I think they might have transferred it to your savings account (if I am not wrong). In that case, you will not earn any additional interest on such interest part.
If I prematurely withdraw my MIS scheme after 4 years of completion, May I have my interest benefits or not?
How much amount will be deducted after 4 years of completion?
Dear Shibadas,
Refer above post properly.
Can we close our rd account after 3 years without any agent...I opened rd through a agent but now I wana close without agent can I do...or I have to close through agent only..plz reply
Dear Seema,
Yes, you can.
Sir I have MIS in Bangalore post office branch now I moved to telangana I want to withdraw prematurely due to some emergency, do I need to go Bangalore or I can close it in telangana, now there is lockdown so what is next solution sir.
Dear Renuka,
Check with the post office whether both are CBS branches or not. If so, then you can withdraw from your city. Else, you have to approach the Bangalore branch.
Hi Concern, I closed my Recurring saving scheme 5 yrs before and not yet withdrew the amount due to some personal reasons.. Now planning to withdraw the same.. Please let me know if i ll face any difficulties in withdrawing the same.