Post offices to stop paying interest on these accounts in cash from April 1

Hyderabad: Post office savings schemes are getting a good response from people from across the country as they allow for small savings. The number of post office savings accounts as well as the amount of money being deposited in them continue to grow. At such a juncture, the postal department took a crucial decision.

The new decision will come into effect from April 1, the interest on Senior Citizens Savings Scheme, Monthly Income Scheme and Term Deposits will not be given to customers in the form of cash. Although interest will be paid as usual on the amounts deposited in these schemes as pre-determined, the amount of interest will be deposited in the customer's post office savings account or in a bank savings account. 

If the senior citizens did not link their bank savings account, the interest on their deposit will be deposited into a post office savings account and if they did not open post office savings also, the interest will be paid in the form of a cheque.