Penalty on premature withdrawal of post office FD hiked for this tenure
If a deposit in a five-year account is withdrawn prematurely after four years from the date of account opening, interest at the Post Office Savings Account rate of 4%.
7 changes in Senior Citizens Savings Scheme rules:More people can invest, more time for retirees, stricter penalty
Premature closure of account
No deposit may be withdrawn before six months have passed from the date of deposit.
If a deposit in a one-year, two-year, three-year, or five-year account is withdrawn prematurely after six months but before the expiry of one year from the date of deposit, interest at the rate applicable to Post Office Savings Account for the completed months is payable to the account holder.
New PPF rule: Interest calculation on premature closure of PPF account changed
When a deposit in a two-year or three-year account is withdrawn prematurely after one year from the date of deposit, interest on such deposit is payable to the account holder for the completed years and months beginning on the date of deposit and ending on the date of withdrawal, and such interest is calculated at a rate that is two percentage points less than the rate specified for a deposit of one or two years, as the case may be.
Change in interest rate calculation
If a deposit in a five-year account is withdrawn prematurely after four years from the date of account opening, interest at the rate applicable to Post Office Savings Accounts is payable.
It means that on premature withdrawal, interest of post office savings account that is 4% will be paid.
Earlier interest rate calculation
If a five-year time deposit account is closed after four years from the date of deposit, the rate applicable to three-year time deposit accounts will be used to calculate
