3 changes in post office savings accounts – New rules

The post office savings account’s previous limit of two joint account holders has been raised to three.

According to the e-Gazette notification: In the Post Office Savings Account Scheme, 2019 (hereinafter referred to as the “principal scheme’’), in paragraph 3, in sub-paragraph (1), in clause (b), for the words “two adults jointly”, the words “upto a maximum of three adults in joint names” shall be substituted.

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The withdrawal application has been modified by the government from Form 2 to Form 3. Passbooks must be displayed to make withdrawals from accounts of at least fifty rupees.

Earlier rule as per the Post Office Savings Account Scheme, 2019, “Withdrawals from the account for not less than fifty rupees may be made by presenting pass book along with Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means.”

According to the Post Office Savings Account (Amendment) Scheme, 2023, “Withdrawals from the account for not less than fifty rupees may be made by presenting passbook along with application for loan or withdrawal in Form-3 of the Government Savings Promotion General Rules, 2018 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means.”

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On the lowest amount in an account between the closing of the tenth day and the end of the month, interest at the rate of 4% annually shall be permitted. Such interest shall be calculated and credited in the account at the end of each year.

In the event of an account holder’s death, the interest on his account will be paid only at the end of the month preceding the month in which the account is closed.

Now as per new the Post Office Savings Account (Amendment) Scheme, 2023, “In the principal scheme, in paragraph 5, in sub-paragraph (5), for the words “in the end of the month”, the words “till the end of the month” shall be substituted.”

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This Union Budget 2023 unveiled the Mahila Samman Savings Certificate for female investors. This is a one-time, short-term savings strategy that will last two years. However, the department has yet to issue an official statement or provide any details.

According to Sitharaman, “For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025. This will offer deposit facility up to Rs.2 lakh in the name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option. “

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