The government has made major changes in the post office FD rules. According to a recent notification issued by the Ministry of Finance, the rules for early withdrawal of FDs at post offices have been amended. According to the new rules, money can be withdrawn only after 4 years from 5-year post office FDs opened on or after 10 November 2023.
But for FDs opened up to 9 November 2023, the earlier rules for early withdrawal will apply. As per the new rules, no Post Office FD can be withdrawn before 6 months from the date of deposit. Similarly, a 5-year FD cannot be withdrawn before completion of 4 years. If the 1, 2 or 3 year post office FD is withdrawn after 6 months i.e. one year before the date of deposit then the deposit will earn only interest on the post office savings account for that period which will be very low. Similarly, if the 1 year or 2 year FD is withdrawn prematurely after one year, a penalty of 2% will be charged on the interest on the 1 year or 2 year FD.