The government has made changes in the rules of Public Provident Fund (PPF). Accounts opened in the name of minors, more than one PPF accounts and PPF accounts linked to NRIs will come under its purview.
The government issued a circular related to this change last month. What are these changes, what will be their impact? Before this, it would be better to know the basic things about PPF. PPF is a long-term investment scheme. Being a government scheme, investment in it is completely safe. Also, its returns are also attractive. PPF account matures in 15 years. The new rules will come into effect from October 1.
PPF interest rate will be applicable when the minor turns 18 years old
The government has said that the money deposited in a PPF account opened in the name of a minor will get the same interest as a post office savings account until the minor turns 18 years old. After that, the interest rate of PPF will be applicable in this scheme. The maturity period of this account will be calculated from the date the minor becomes an adult. Many people open PPF accounts in the name of minors.
Also Read:Â New Vande Bharat trains will run from these three cities from Saturday, see route…
Zero interest on NRI accounts without residency details from October
The government has also issued new guidelines for NRI’s PPF accounts. Currently, NRI’s PPF accounts that do not require residency details get the same interest rate as post office savings accounts. Now this interest rate will be available only till September 30, 2024. After that, the interest rate on such accounts will decrease to zero. Therefore, NRIs need to know about their accounts properly before the new rules come into effect from October 1. If they want, they can take the advice of a financial advisor in this regard.
PPF interest rate will be applicable only on primary account
If an investor has opened more than one PPF account, then the interest rate of PPF will be applicable only on his primary account. This interest will be paid on the maximum amount of annual investment allowed in this scheme. The excess amount will be returned to the investor with zero percent interest. The balance of the second account will be put in the primary account.
Related Articles:-
2000 rupee notes: RBI gave a big update regarding 2000 note, People have notes worth Rs 7,261 crore.
Great Pension: By investing Rs 55, you will get a pension of Rs 3000 every month. check details
