No bonus for new postal accts

The Finance Ministry has also announced that only existing account holders under the monthly income scheme, and not new ones, would get the 10 per cent bonus on maturity.

THE PENALTY on prematurely closing a post office monthly income account, with a six-year maturity period, has been reduced.

The Finance Ministry has also announced that only existing account holders under the monthly income scheme, and not new ones, would get the 10 per cent bonus on maturity.

HT Image

On closure, a Finance Ministry release has said the penalty would now be 2 per cent of the deposit amount, from the prevailing 3.5 per cent, if the account closed within three years after opening. Closed after the third year and before maturity, it would attract penalty of one per cent.

The reduced rates come into effect from Monday next.