- Date : 25/08/2023
- Read: 3 mins
Joint account, deposit and withdrawal – three key areas that have seen rule changes by the Post Office Savings Account (Amendment) Scheme, 2023
The Department of Posts offers various saving schemes to the general public. Post office savings account is one such scheme. On 3 July 2023, the Department of Economic Affairs and Ministry of Finance issued an e-gazette notification which announced three amendments to the savings account rules. These are related to the number of maximum account holders and interest on deposits and withdrawals.
Let us look at these three rule changes.
Highlights:
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The Post Office Savings Account (Amendment) Scheme, 2023, introduced 3 changes
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The number of maximum joint account holders in postal savings accounts has increased
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Interest calculation wording and deposit form have been changed
1. Number of Maximum Account Holders
The Post Office Savings Account Scheme 2019 allowed only two people to open a savings account jointly. The Post Office (Amendment) Scheme, 2023 has increased the number of maximum account holders to three. The recent e-gazette replaced the words “two adults jointly” with the words “up to a maximum of three adults in joint names”.
2. Withdrawals from the Savings Account
As per the Post Office Savings Account Scheme 2019, account withdrawals for Rs 50 or more must be made by presenting a duly filled and signed Form 2 along with the passbook. The Post Office (Amendment) Scheme of 2023 replaces Form 2 with Form 3 of the Government Savings Promotion General Rules, 2018. This form must be duly filled in and signed, and presented along with a passbook, to make withdrawals of not less than Rs 50. As expected, the withdrawal will continue to remain subject to minimum prescribed balance limits.
Also Read: Significant Changes In Post Office Schemes From April 1, 2023: What You Need To Know
3. Interest Calculation on Deposits
A small change in the wording has been made by the Post Office (Amendment) Scheme of 2023.
Under the Post Office Savings Account Scheme 2019, an interest of 4% per annum was allowed. The balance of a calendar month was calculated based on the lowest balance in the account between the close of the tenth day and the end of the month. The interest for all the months is calculated and credited to the account at the end of the year.
The Post Office (Amendment) Scheme of 2023 has replaced the words “in the end of the month” with the words, “till the end of the month”.
For accounts closed during the calendar year, interest is received up to the month preceding the month in which the account was closed.
Conclusion
With these amendments, an account holder can now rope in two additional joint account holders to his or her account. They can now design their financial planning accordingly. Besides, minor changes have been introduced in the withdrawal formalities and the interest calculation.
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Also Read: Guaranteed Returns And 80C Tax Benefits: 5 Post Office Schemes To Get These Benefits
