PPF and SSY account holders will have to do this before March 31, otherwise the account may be closed

PPF and SSY account holders: The first week of March is about to pass. This month is the last month of the financial year 2023-2024. After this the new financial year will start. You will definitely have to complete some work before the new financial year. If you have invested in schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), then deposit the minimum amount in it by March 31, otherwise your account may be closed (inactive). Although it is not that you cannot reopen the closed account later, but for this you will have to pay unnecessary penalty. Therefore, it is better that this work is completed on time.

What are the rules regarding PPF and Sukanya Samriddhi?

At least Rs 500 has to be deposited annually in PPF and at least Rs 250 has to be deposited in Sukanya Samriddhi Yojana. Your account is closed if the minimum amount is not deposited. If these accounts are closed, then to reopen them, a minimum amount (Rs 500 for PPF and Rs 250 for Sukanya) + Rs 50 default fee will have to be deposited on every year basis.

That means, if you do not deposit money for two years, then you will have to pay a fine of Rs 100 for the minimum balance of two years and Rs 50 per year for two years. Not only this, in case of closure of PPF and Sukanya Samriddhi accounts, you will neither be able to make partial withdrawals from them nor will you be able to avail the loan facility on PPF.

How much interest on PPF and SSY?

Let us tell you that at present 7.1 percent interest is being given on the amount deposited in Public Provident Fund and 8.2 percent interest is being given on Sukanya Samriddhi Account. In the PPF scheme, income tax exemption is available on all three returns, maturity amount and interest. Accounts can be opened for 15 years, extendable in blocks of 5 years. Whereas in Sukanya Samriddhi Account, tax benefits can be availed under Income Tax Act 80C. Both these accounts can be opened in the post office or authorized branch of the bank. SSY account can be opened after the birth of the girl child before she turns 10 years old.