Senior Citizen Post Office schemes: Time Deposit to RD, NSC, MIS, KVP – Premature Encashment Rules

Senior Citizen Post Office schemes (latest premature closure/encashment rules): Various small savings schemes offered by Post Office are very popular among senior citizens. For the elderly citizens, the Post Office offers schemes like Time Deposit/Fixed Deposit (TD), Monthly Income Scheme (MIS), Recurring Deposit (RD), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Senior Citizens Savings Scheme (SCSS), and Public Provident Fund (PPF). The Post Office also allows senior citizens to open a savings account.

This article looks at the premature encashment conditions for the above-mentioned popular Post Office schemes among senior citizens.

Post Office Savings Account (POSA): Senior citizens can close their POSA accounts at any time. There is no premature encashment condition, as per information on the Post Office website.

Post Office Time Deposit/Fixed Deposit: Senior citizens can close their time deposit accounts only after 6 months of opening the account. There is also a premature closure fee that they are required to pay.

Post Office Monthly Income Scheme (POMIS): Senior citizens can close their POMIS accounts only after 1 year of opening the account. There is also a premature closure fee that they are required to pay.

Post Office Recurring Deposit (RD): Senior citizens can close their Post Office RD accounts only after 3 years of opening the account. In case of premature closure, only the Savings Account interest rate will be permissible, as per information on the Post Office website.

National Savings Certificate (NSC): Senior citizens cannot close their NSC accounts in normal circumstances. Premature closure is permitted only in case of death and forfeiture, as per information on the Post Office website.

Kisan Vikas Patra (KVP): Senior citizens can close their KVP accounts only after 2 years and 6 months of opening the account.

Senior Citizens Savings Scheme (SCSS): Senior citizens can close their SCSS accounts at any time. However, premature closure fees at prescribed rates will be applicable, as per information on the Post Office website.

Public Provident Fund (PPF): Senior citizens can close their PPF accounts only after 5 years and only in case of severe illness, higher education and on acquiring NRI status, as per information on the Post Office website.

Disclaimer: The above content is for information purposes only. For more details, please visit your nearest post office or check on the post office website.