Conditions for Premature Closure of SSA account

GURU’S DAILY INSIGHT

Conditions for Premature Closure of SSA account

Death of the Account Holder:

• If the account holder dies, the account will be closed immediately upon submission of an Account Closure Form SB-7B and a death certificate.

• The balance in the account, along with any interest accrued up to the date of death, will be paid to the guardian of the deceased account holder.

Interest After Death:

• Interest will continue to be paid for the period between the account holder's death and the closure of the account, at the rate applicable to Post Office Savings Accounts, for the balance in the account.

Premature Closure Due to Compassionate Grounds:

• In situations of extreme hardship (e.g., medical issues or the death of a guardian), the account holder or their guardian may request a premature closure of the account, even before the usual completion of five years.

• This requires proper documentation to establish the grounds for closure, and it needs approval from the appropriate authority (Head of Division, Sr. Postmaster, Chief Postmaster, or Director).

Minimum Period for Premature Closure:

• No premature closure can take place within the first five years from the date the account was opened.