Investing in small savings schemes like PPF, NPS and SSY is very easy, but even a small mistake can cost investors. If you default in investing in these accounts in any financial year, not only will you lose interest, but also a penalty.
new Delhi. For savings and investment, if you also invest money in schemes like PPF, NPS or Sukanya Samridhi, then there is very important news for you. You need to make minimum investment in these accounts before 31st March.
Actually, this is the last week to invest in tax saving schemes for the current financial year. You are also required to make a minimum investment every year in accounts like PPF, NPS and Sukanya. If this is not done then your account will become inactive and you will have to pay penalty instead of interest. It is better that you check whether the minimum investment has been made in the account before the last date passes.
PPF account: Minimum investment of 500 required
To keep the Public Provident Fund (PPF) active, you need to invest a minimum of Rs 500 annually. If you fail to do so, the account will become inactive and you will have to pay a fine of Rs 50 for restarting. It is worth noting that you can activate PPF account up to 15 days before maturity. Such accounts cannot be activated after the lapse of 15 years.
NPS account: Rs 1,000 required to be deposited annually
A minimum investment of Rs 1,000 is also required to be made annually in the National Pension System (NPS) account. This rule applies only to Tier-1 account of NPS, whereas in Tier-2 account you can put money at any time like a savings account. If you defaulted in the minimum investment, then in whatever year it happens, you will have to pay a penalty of Rs 100 to get the account activated again.
Sukanya Samriddhi Yojana: It is necessary to deposit Rs 250
You are also required to make a minimum investment annually in this account to be opened in the name of daughters. If you do not invest minimum 250 rupees in Sukanya account in any financial year then your account will be deactivated. To make it active again, with an investment of Rs 250, a fine of Rs 50 will also have to be paid. If your account has become inactive, then it is necessary to activate it before the daughter completes 15 years.
…then even interest will not be available
Investment experts say that there is a need to be very careful while opening an account in such government savings schemes. If you miss the minimum investment in any financial year, then you will not get any interest. Later, even if you activate the account by paying money and penalty, you will not get the interest for the defaulted year. This will do double damage.
