Post Office FD: Investor alert: new information! Avoid making this error to avoid receiving interest on your savings account

 Post Office FD: Investor alert: new information! Avoid making this error to avoid receiving interest on your savings account

Post Office FD: Investor alert: new information! Avoid making this error to avoid receiving interest on your savings account

Post Office FD: There have been modifications to the guidelines for early Post Office FD withdrawal. Following this, you will get continuous income on the deposit made into the savings account if you remove the five-year FD after four years.

There has been a significant modification to the Post Office's FD regulations recently. Because of this, you will only get the interest rate on your savings account for the duration of the deposit if you prematurely remove your five-year fixed deposit. Let us inform you that you may only withdraw your five-year Post Office fixed deposit (FD) once your four-year deposit has been completed. Before four years, money cannot be withdrawn.

For instance, someone established a Rs. 1 lakh five-year fixed deposit at 7.5 percent interest. If, after four years, he finds himself in dire need of money and decides to take an early withdrawal, he will get interest at the current savings account rate of 4 percent rather than 7.5 percent. The individual making the FD might see a direct loss of 3.5 percent in this case.

The 1, 2, and 3 year early withdrawal policies for FDs were also modified.

Premature withdrawal of one, two, and three year Federal Deposits (FDs) is subject to new restrictions from the post office. Within six months after depositing money into an FD for one, two, or three years, an early withdrawal is not permitted. The interest on a one-year FD will be paid at the same rate as the savings account if it is withdrawn after six months.

Simultaneously, a two-year fixed deposit must be repaid at the savings account rate plus an additional two percent penalty if it is withdrawn after six months or a year. In addition, a two percent penalty at the savings account rate will be charged for withdrawals of three-year funds after six months, as well as for early withdrawals after one and two years.