Small Savings Account: If you also invest in Small Savings Scheme then there is useful news for you. The Post Office (DOP) has announced that it will freeze matured accounts under various small savings schemes
Small Savings Account: If you also invest in Small Savings Scheme, then there is news of work for you. The Post Office (DoP) has tightened the rules for small savings accounts. From now on, account holders will have to close their accounts within a period of three years of maturity. If this is not done, the Department of Posts will freeze them. The Post Office has announced that it will freeze matured accounts under different small savings schemes, whose term has not been extended or closed even after three years from the maturity date. Recently, the department has issued an order to make account freezing a regular process, which will be done twice a year so that such accounts can be identified to ensure the safety of the hard-earned money of the depositors. Small savings scheme investors should keep in mind that their accounts will be frozen if they are not closed within three years of maturity.
Which small savings accounts will be frozen?
According to the order, small savings scheme accounts include Time Deposit (TD), Monthly Income Plan (MIS), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Recurring Deposit (RD) and Public Provident Fund (PPF) accounts.
What happens if the account is frozen?
When a post office small savings account is frozen after maturity, all transactions, including withdrawals, deposits, standing orders and online services, are suspended. According to an order dated July 15, 2025, “In order to further enhance the safety of the hard-earned money of the depositors, it has now been decided that this process of freezing will be done twice a year as a continuous cycle. The process of identification and freezing of such accounts will start from 1st July and 1st January every year and will be completed within 15 days. This means that every year on 30th June and 31st December respectively, the accounts completing the maturity period of three years will be identified and frozen.”
How to unfreeze your small savings scheme account?
Account holders have to reactivate or unfreeze their accounts by submitting the required documents to the concerned department. As per Savings Bank Order No. 2512022 dated 16-12-2022, the procedure for activating accounts which have been closed for more than 3 years, whose maturity period has already been completed but have not been closed within 3 years and the last date is as follows.
The account holder should visit any post office and submit the following documents for closure:
- Passbook or proof of the account to be closed
- KYC documents like mobile number, PAN card and Aadhaar or address proof
- Account Closure Form (SB-7A): The account holder has to submit the account closure form, passbook and post office savings account number or bank account details, as well as a cancelled cheque/passbook copy, to get the maturity amount credited to his savings account.
- The department will first check the depositor’s details and match the signature with the relevant records to ensure the genuineness of the account holder. After confirming the veracity of the case, the concerned account/certificate will unfreeze the accounts.
- The maturity amount will be credited to the account holder’s post office savings account or bank account through ECS outward credit.
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