SCSS, NSC, Post office term deposits, RD, MIS: Withdrawing money prematurely? Know rules, interest rates

Dec 16, 2023

Premature closure is allowed at any time after the date of opening. Interest rate: 1) If the account is closed before one year, no interest will be payable, and if any interest is paid in the account shall be recovered from principle.2) If the account closed after one year but before two years from the date of opening, an amount equal to 1.5 per cent will be deducted from the principal amount.3) If the account closed after two years but before five years from the date of opening, an amount equal to 1 per cent will be deducted from the principal amount.4) Extended account can be closed after the expiry of one year from the date of extension of the account without any deduction.

Premature withdrawal is allowed after three years from the date of account opening. Users have to submit an application form at the concerned post office. Interest rate: Customers will get the interest rate applicable for the post office savings account if they prematurely withdraw money from post office recurring deposits.

Investors can withdraw their money from post office term deposits after six months. Interest rate: If the post office time deposit is closed after six months and before one year, investors will get the post office savings account interest rate applicable at that time. For the April-June quarter of 2023, the interest rate of the PO savings account is 4 per cent.If a three-year POTD or five-year POTD account is prematurely closed after one year, the interest will be calculated as two per cent less than the time deposit interest rate (i.e., two or three years) for completed years. For the remaining period of less than a year, PO savings interest rates will be applicable.

Premature closure Post Office Monthly Income Scheme Account is permissible after one year. Interest rate: 1) If the account is closed after one year and before three years from the date of account opening, a deduction equal to 2 per cent from the principal will be deducted and the remaining amount will be paid.2) If the account is closed after three years and before five years from the date of account opening, a deduction equal to 1 per cent from the principal will be deducted and the remaining amount will be paid.

No premature withdrawal is allowed before five years except for the following conditions: 1) On the death of a single account, or any or all the account holders in a joint account2) On forfeiture by a pledgee being a Gazetted officer.3) On order by the court

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