There is big news for Post Office investors. The Ministry of Finance has issued new rules regarding Small Savings Schemes Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and National Small Savings (NSS).
These rules will come into effect from the first date of next month i.e. October 1. If you are also an investor, then read these rules carefully once.
PPF New Rule:
The first rule is regarding PPF accounts opened for minors. PPF accounts opened in the name of minors will earn interest at the post office savings account rate until the minor turns 18. After that, the interest rate applicable for PPF will be applicable. Maturity will be calculated from his/her 18th birthday.
Second rule- If someone has opened more than one PPF account, then the current interest rate will be applicable on the primary account and the secondary account will be merged with the primary account. The excess amount will be refunded with 0% interest. More than two additional accounts will get 0% interest from the date of their opening.
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The third rule is about NRIs. Active NRIs whose PPF accounts were opened under 1968, where Form H does not specifically ask about the residential status of the account holder. Such account holders will get Post Office Savings Account (POSA) interest till September 30. After this date, the interest will be 0%.
Sukanya Samriddhi Yojana: SSY New Rules
If the Sukanya Samriddhi Account is opened by grandparents, then the account will be transferred to the guardian or biological parents. If more than two accounts are opened, then the additional account will be closed.
New Rules of NSS
For accounts opened before 2 April 1990, the current interest rate of the scheme will be applicable on the first account. The balance in the second account will get the current Post Office Savings Account (POSA) rate plus 2% interest. From October 1, 2024, 0% interest will be available on both accounts. On the other hand, for accounts opened after 2 April 1990, the current interest rate will be applicable on the first account.
The current Post Office Savings Account rate will be applicable on the second account. From October 1, 2024, 0% interest will be available on both accounts. If there are more than two accounts, no interest will be available on the third and additional accounts. The principal amount will be refunded.
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