PPF and Small Savings Accounts May Close After 3 Years – Know the New Government Rule

If you also invest in a Small Savings Scheme, then this news is important for you. The Post Office (Department of Posts) has made the rules stricter for small savings accounts.

From now on, account holders must close their accounts within three years after maturity. If they don’t do this, the Post Office will freeze the account. The Post Office has said that it will freeze accounts under different small savings schemes if they are not closed or extended within three years from the maturity date.

Recently, the department has issued a new order to make this freezing process a regular rule. It will now be done twice a year. This is to find such accounts and keep the hard-earned money of depositors safe. So, if you have invested in a small savings scheme, remember this: If you don’t close your account within three years after maturity, it will be frozen.

Which small savings accounts will be frozen?

As per the new order, many small savings scheme accounts will be frozen if they are not closed within three years after maturity. These accounts include Time Deposit (TD), Monthly Income Scheme (MIS), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVP), Recurring Deposit (RD), and Public Provident Fund (PPF).

If the account is not closed or extended within three years, it will be frozen by the post office. Once frozen, you will not be able to deposit or withdraw any money. All services like standing instructions and online transactions will also stop. According to the order dated 15 July 2025, this process will now happen two times a year. The identification and freezing of such accounts will begin on 1st July and 1st January every year. The process will be completed in 15 days. So, on 30th June and 31st December, the accounts that have passed the maturity period of three years will be frozen.

How to unfreeze your account

If your account has been frozen, you need to visit the post office to unfreeze or close it. You must bring your passbook or any proof of the account. You also need to submit KYC documents like your PAN card, Aadhaar card or any address proof, and your mobile number. Along with this, you have to fill and submit the Account Closure Form (SB-7A). You also need to give your bank account or post office savings account details. A cancelled cheque or a copy of your bank passbook may also be required.

After you submit all the documents, the post office will check your details and verify your signature. If everything is correct, your account will be unfrozen. The maturity amount will be sent to your bank or post office savings account through ECS (Electronic Clearing Service).