Post Office Saving Scheme : With effect from April 1, 2022, post offices will stop paying interest on Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts in cash, Department of Post said in a circular. The interest will only be credited only in account holder’s post office savings account or bank account. In case the account holder is not able to link his/her savings account with Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit  accounts, the outstanding interest should be paid only through credit in post office savings account or by cheque.

The interest will be paid only in bank accounts or post office savings accounts. The schemes on which the post office won’t pay interest in cash are – Term Deposit accounts, Monthly Income Scheme, and Senior Citizen Savings Scheme, according to a Live Mint report.


There are four types of Term Deposit Accounts based on the tenure.

These are one-year, two-year, three-year and five-year accounts.

One-year, two-year and three-year term deposit accounts attract 5.5 per cent of interest rates.

The five-year term deposit account fetches 6.7 per cent of interest rate.


The interest rate on the Post Office Monthly Income Scheme Account (MIS) 6.6 per cent per annum.

Interest is taxable in the hands of the depositor.


A 7.4 per cent per annum, payable from the date of deposit of March 31/September 30/December 31 in the first instance and thereafter, interest shall be payable on March 31, June 30, September 30 and December 31.

Meanwhile, account holders of the Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit must note that undrawn interest on these accounts won’t earn you any interest. However, if interest is credited in a savings account, then you can earn additional interest.