As per clarification from India Post, 5-year post office FD opened on or after November 10, 2023 cannot be closed earlier than 4 years from the date of opening of the FD. That means, withdrawal of money from 5 year FD can be done only after 4 years. Whereas, for FDs opened till November 9, 2023, the previous rules for premature withdrawal are applicable.

New rules for premature withdrawal from post office FD 

The government has amended the premature withdrawal rules for post office FDs of different tenures. The new rules are as follows-

1. Any post office FD cannot be withdrawn before 6 months from the date of deposit. At the same time, 5 year post office FD cannot be withdrawn before completion of 4 years.
2. If a 1-year, 2-year or 3-year Post Office FD is withdrawn after 6 months but before one year from the date of deposit, the deposit will earn only Post Office Savings Account interest for that period which is significantly less. will be.
3. If a 2-year or 3-year Post Office FD is prematurely withdrawn after one year, a penalty of 2% will be deducted from the interest rate applicable on 1-year or 2-year Post Office FD.

Old rules for premature withdrawal from post office FD-

1. Old rules for premature withdrawal from post office FDs opened on or before November 9:
2. Money cannot be withdrawn from any post office FD before the expiry of 6 months from the date of deposit.
3. If 1 year, 2 years, 3 years or 5 years post office FD is withdrawn after 6 months but before one year from the date of deposit, then post office savings account interest will be given.
4. If a 2-year, 3-year or 5-year Post Office FD is broken after 1 year, a penalty of 2% will be deducted from the interest rate applicable on 1-year, 2-year or 3-year Post Office FD.

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For the benefit of common people across the country, the post office runs several small savings schemes which are most popular among senior citizens and risk averse people. The interest rates on these small savings schemes are revised every quarter by the Government of India.

Till now India Post is offering many schemes to meet the various needs of common people and their investment objective. According to the India Post website, post office small savings schemes have different features for each scheme like interest rates, tenure and premature withdrawal rules.

Post Office Savings Account (POSA)

You can withdraw and close money from the post office savings account. The post office gives 4.0% interest per annum on its savings account.

Post office recurring deposit

The National Savings Recurring Deposit Account can be closed prematurely after three years from the date of opening of the account by submitting an application to the post office. If the account is closed prematurely, even if it is a day before maturity, the rate of interest applicable to the Post Office Savings Account will be applicable.

Post office time deposit

No FD can be closed before six months from the date of deposit in this account. If a time deposit account is canceled after 6 months but before one year, the interest rate will be applicable. If 2/3/5 years TD account is prematurely terminated after 1 year, interest is calculated at 2% less than TD interest rate for completed years (i.e. 1/2/3 years) and savings interest rates applicable for periods of less than one year. A TD account can be canceled prematurely by submitting the prescribed application form along with the passbook to the post office.

Monthly Income Savings Account

No money can be withdrawn in this account before one year from the date of deposit. If the account is closed after one year but before three years from the date of opening, 2% of the principal will be deducted and the balance will be paid. If the account is closed after 3 years but before 5 years, 1% of the principal will be deducted and the balance will be paid.

Senior Citizens Savings Scheme Account

1. Any account can be prematurely closed after the date of account opening.
2. If the account is closed before 1 year, no interest will accrue and interest if any paid in the account will be recovered in principle.
3. If the account is closed after 1 year but before 2 years from the date of opening, then money equal to 1.5% of the principal amount will be deducted.
4. If the account is closed after 2 years but before 5 years from the date of opening, an amount equal to 1% of the principal amount will be deducted.
5. The account can be closed after the expiry of one year from the date of extension of the account without any deduction.

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