look news india
Changes in Small Savings Account Scheme: The Finance Ministry has announced new guidelines for regularizing irregular accounts in various small savings schemes. This guide covers multiple accounts, NSS-87, PPF accounts for minors and Sukanya Samriddhi Yojana. Compliance with the new guidelines has become effective from October 1.
These amendments were made in PPF
In the new revised guidelines, amendments have been made with the aim of regularizing irregular accounts in six main categories. In which the additional account of holders having more than one PPF account will be declared irregular and only 4 percent interest will have to be paid instead of the actual 7.1 percent. Also, NRIs who have not declared their residential status will not get the benefit of interest in their PPF accounts from October 1.
NSS-87 Account: Accounts opened before April 2, 1990 will be subject to the prevailing interest rates, while other accounts will attract 200 bps interest in addition to the POSO rate. However, the deposit limit will have to be maintained in this. The first account opened after the above date will get interest at the current rate and the second at the standard rate.
Multiple PPF Account: The current rates of the scheme will be applicable on the main PPF account, while no interest will be earned on the additional account.
NRI PPF Account: If the holder becomes an NRI during the maturity period of PPF, he will get POSA (Post Office Savings Account) interest till September 30, 2024, after which he will not get any interest.
Small Savings Account: Interest on this account will be as per post office savings account rate.
Sukanya Samriddhi Account: Sukanya Samriddhi Account opened by anyone other than the guardians or foster parents of the minor child will be closed. Therefore the owners have to hand over this account to their parents immediately.
Central government kept interest rates on small savings schemes intact
| Public Provident Fund (PPF): | 7.10% |
| Senior Citizens Savings Scheme (SCSS): | 8.2% |
| Sukanya Samriddhi Yojana: | 8.20% |
| National Savings Certificate (NSC): | 7.70% |
| Post Office Monthly Income Scheme (PO-MIS): | 7.40% |
| Kisan Vikas Patra (KVP): | 7.50% |
| 5-Year Recurring Deposit (RD): | 6.70% |
