The government has recently introduced three significant changes to the existing post office savings account schemes. These alterations, announced through an official e-gazette notification from the Department of Economic Affairs, Ministry of Finance, have been collectively termed the "Post Office Savings Account (Amendment) Scheme, 2023". These changes are set to impact the way individuals manage their post office savings and investments.
These amendments include the expansion of joint account holder limits, the adoption of a new form for account withdrawals and new rule regarding interest on deposits in the account.
Expansion of joint account holder limit
One of the noteworthy changes pertains to the maximum number of joint account holders allowed for
Post Office Savings Accounts. Previously, joint accounts were limited to two members. However, under the new scheme, this limit has been expanded to accommodate up to three joint account holders. This alteration provides individuals with more flexibility in sharing joint financial responsibilities and managing their savings collectively.
Revised account withdrawal rules
Another important change affects the rules for withdrawing funds from post office
savings accounts. Previously, individuals were able to withdraw a minimum of Rs 50 from their accounts by presenting the passbook and filling out Form-2, as per the guidelines outlined in the Post Office Savings Account Scheme of 2019. However, the new amendment has introduced a shift to Form-3 for withdrawal purposes. This means that individuals looking to withdraw a minimum of Rs 50 from their accounts will now need to complete and sign Form-3, in addition to presenting their passbook. This change aims to streamline and update the withdrawal process, ensuring better compliance with the latest regulatory framework.
Interest on deposits in the account
According to the rule, the lowest balance in the account between the 10th day and the end of the month will earn interest at the rate of 4 percent per annum. Such interest will be calculated and deposited in the account at the end of the year. Meanwhile, if an account holder dies accidentally, then the interest in his/her account will be paid only at the end of the month in which the account is closed.
