The Economic Affairs Department of the Ministry of Finance has announced new rules for Small Savings Schemes.
These rules will take effect from October 1, 2024, and apply to both irregular and regular account holders.
National Small Savings Accounts (National Saving Scheme)
Accounts Opened Before April 2, 1990: The current interest rates will continue until October 1, 2024. After this date, these accounts will receive 0% interest.
Post Office Savings Account (POSA): POSA accounts will receive interest at a rate 2% higher than the current rate until October 1, 2024.
After this date, POSA accounts will also receive 0% interest.
Accounts Opened After April 2, 1990: These accounts will continue to receive the current scheme rate until October 1, 2024. After this date, no interest will be paid on these accounts.
Multiple Accounts: If an individual holds more than two accounts, the third and any additional accounts will not earn interest.
The principal amount of the third account will be refunded.
Public Provident Fund (PPF)
Minor’s PPF Accounts: Until the minor turns 18, the account will earn interest at the POSA rate.
After the minor turns 18, the account will benefit from the PPF interest rate, and maturity calculations will start from the 18th birthday.
Multiple PPF Accounts: If an investor has more than one PPF account, the secondary accounts will be merged with the primary account.
No interest will be earned on any additional accounts opened.
NRI PPF Accounts: NRI account holders will receive POSA interest until September 30, 2024. From October 1, 2024, these accounts will receive 0% interest.
Sukanya Samriddhi Yojana
Account Transfers: If grandparents have opened a Sukanya Samriddhi Account, it will be transferred to the guardian or biological parents. Any additional accounts beyond two will be closed.
Instructions for Post Offices
Document Collection: Post offices must collect PAN Card and Aadhaar Card details from account holders or guardians.
Customer Information: Post offices are responsible for informing customers about these new rules and providing guidance on the changes.
