Post Office FD Scheme Updates: The Ministry of Finance recently unveiled significant alterations in the Post Office FD Scheme, specifically in its pre-mature withdrawal regulations. Effective from November 10, 2023, the tenure for pre-mature withdrawal in the 5-year FD scheme has been reduced to four years. Consequently, withdrawals from the Post Office FD after four years would now be considered premature, unlike the previous practice post the five-year tenure. Furthermore, investors withdrawing their investments within six months to one year in FD schemes of one, two, or three years will only earn interest rates equivalent to the Post Office Savings Account, considerably lower than the FD scheme.
Old Withdrawal Regulations under the Post Office:
It’s notable that accounts opened before November 10, 2023, will adhere to the previous withdrawal rules. For accounts opened until November 9, there will be no facility for withdrawals for the initial six months in the Post Office FD accounts. According to the former regulations, there will be no facility for withdrawals within six months of investment.
However, in the scenario of withdrawing before the completion of one, two, three, or five-year tenures after the initial six months, investors will only benefit from the savings account interest rate based on the deposited amount per month. If a premature withdrawal occurs after four years in the five-year FD scheme, investors will receive benefits equivalent to the three-year FD scheme.
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