PPF or Public Provident Fund, and Sukanya Samriddhi Schemes are the 2 popular investing or saving schemes that give you a higher return on long term investment.
Currently, PPF gives a 7.1% Interest rate, and SSY gives 8.2% returns. These schemes also come with tax benefits.
The Ministry of Finance changed these 5 rules in the both schemes. These rules will come into effect on October 1, 2024. Your account may be closed or interest will be 0, if you break any rule. These rules are brought in to stop irregularities and frauds in these accounts.
Minor PPF Account
You can open only one account in the name of the minor in the family, but the minor account will gets interest on the savings account, which is 3-4% in many banks, until the minor becomes 18 years old, then the normal PPF rate will apply to him for the next 15 years after the age of 18.
PPF Account Limit
Now, you can open only 1 PPF account in your name, rest accounts will be closed, Only primary or oldest account will be active. If the yearly limit was crossed at 1.5 lakh in multiple PPF accounts, then the money till 1.5 lakh for one PPF will transfer to the oldest account, and the rest of the accounts will be closed and money will be refunded to you with 0% interest.
You can continue only one PPF account with a 1.5 Lakh limit. Bank will check the history of your accounts and decide whether to act on other accounts.
NRI PPF Accounts
You know, NRIs can’t open PPF accounts, but if a person becomes an NRI during the active session of a PPF account, then he/she may not get the interest on the PPF account. They will get normal savings account interest until September 30, 2024, and from October 1, 2024, no interest will apply on the NRI accounts.
Sukanya Samriddhi Yojana Account
You can open 2 Sukanya Samriddhi Yojana(SSY) accounts in a family, but from October 1, 2024, only a legal guardian, certified by court or biological parents can manage or open the account for the girl child, no more grandparents or other guardians. Accounts above 2 will be closed.
Documents
If all the required documents, like KYC or other proofs, are not submitted by you, do this soon, otherwise, there may be a problem.
So, these were the 5 New Rules For PPF And Sukanya Samriddhi Yojana, which will come into effect From 1 October 2024.
