Sukanya Samriddhi Account: A major change is being made by the Department of Economic Affairs under the Ministry of Finance in the small savings scheme related to the post office. For this, guidelines have been issued for the National Small Savings (NSS) schemes through the post office. The purpose of these guidelines is to regularize the accounts opened irregularly under the savings schemes. The new guidelines will come into effect from October 1, 2024. If the new rules are not followed, they can be closed.
You will get zero interest on such account
According to the circular issued by the department, six categories have been identified. Accordingly, new guidelines have been issued. Out of the accounts opened before 2 April 1990, the first account will get the benefit of the current interest rate. The second account will get the current Post Office Savings Account (POSA) rate and 2% interest on the remaining amount. Under the new rule, 0% interest will be available on both the accounts from 1 October 2024.
The principal amount will be refunded without interest
This includes wrongly opened NSS accounts, PPF accounts opened in the name of children, more than one PPF account, addition of PPF account by foreigners and correction of Sukanya Samriddhi Account (SSY) opened by grandparents apart from parents of children. As per the guidelines, no interest will be given on more than two accounts and third and additional accounts. Apart from this, the principal amount will be refunded to the depositor.
PPF Account
An account opened in the name of a minor will be eligible for Post Office Savings Account (POSA) interest till the minor attains the age of 18 years, thereafter PPF rates will apply. Maturity will be calculated from the date the minor attains the age of 18 years. If the deposit in more than one PPF account is within the annual limit, the rate applicable for the scheme will be applicable on the primary account. Any secondary account will be merged with the primary account. Excess money will be refunded with 0% interest. If there is a third account, the interest will become zero from the date of opening it.
Kanya Samriddhi Account
The name of the guardian has to be changed in the account opened by grandparents (who are not legal guardians). The real parents or legal guardians will have to do this. If a customer breaks the rules of the scheme and opens more than two accounts, then the additional account will be closed. Wrong accounts opened in the name of the child can be corrected and you will also get interest. All post offices have been asked to take PAN and Aadhaar number from the account holders or guardians. After updating the system first, you can apply for regularization. The government has asked the post offices to inform the account holders about these changes and help them follow the rules.
NRI’s PPF account
People who still visit India and have a PPF account. They will get interest till September 30, 2024. After this they will stop getting interest.
Irregular National Savings Account
The rules have been changed for three types of accounts related to the National Savings Scheme. This includes two accounts opened before April 1990 and more than two accounts opened after that. For the first type of accounts, 0.20 percent post office savings account interest will be added extra. Normal interest will be given on the rest of the accounts. No interest will be given on the third type of account and their principal amount will be returned.
All post offices have been asked to collect PAN and Aadhaar information from the account holders. The system will have to be updated before submitting the regularization form. Account holders will have to be informed about these changes.
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