Small savings schemes: These post office savings accounts will be frozen after 3 years: Here is how to unfreeze your account

Time of India

5 days ago

Which small savings accounts will be frozen?
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What happens to the account if it is frozen?
How to unfreeze your small savings scheme account?
The Department of Posts (DoP) has announced that it will freeze matured accounts under various small savings schemes accounts that have not been extended or closed even after three years from the date of maturity. Recently, it has issued an order to make account freezing a regular exercise to be conducted twice a year to identify such accounts to ensure safety and security of hard-earned money of depositors.Small savings schemes holders should note that their accounts will become frozen if not closed within three years of maturity.Small savings scheme accounts include Time Deposits (TD), Monthly Income Scheme (MIS), National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), National Savings Certificate (NSC), Recurring Deposit (RD), and Public Provident Fund (PPF) accounts, as per the order.When a post office small savings account goes frozen after maturity, all transactions are suspended, including withdrawals, deposits, standing orders, and online services.As per an order dated July 15, 2025, 'To further enhance security of hard-earned money of depositors, it has now been decided that this freezing activity will be conducted twice a year as a continuous cycle. The process of identification and freezing of such accounts will be completed within 15 days, commencing from July 1and January 1 of each year. This means accounts that complete three years of maturity as on 30th June and 31st December every year, respectively, will be identified and frozen.'Accountholders must reactivate or unfreeze their accounts by submitting the required documents to the concerned department.According to the SB Order No.2512022 dated 16-12-2022, here is the process to activate inoperative more than 3 years, which already have been matured but not closed within 3 years and cut-off date.The accountholder should visit any post office for closure and submit the following documents:a) Passbook or Certificate of the frozen accountb) KYC Documents such as mobile number, PAN card and Aadhaar or address proofc) Account Closure Form (SB-7A): Accountholder should also submit account closure form, passbook and details of post office savings account number or bank account details along with a cancel cheque/copy of passbook for credit of maturity value into his/her savings account.The department will first check and confirm the details of depositor and tally signature to ensure genuineness of the account holder with relevant records. After verification of the genuineness of the case, the account/certificate concerned will unfreeze the accounts.The maturity value will be credited either in the post office savings account or bank account of the accountholder through ECS outward credit.