PPF Interest rate: Under the new rules of PPF, three changes are going to happen, in which the rules for PPF accounts opened in the name of minors, more than one PPF accounts and extension of PPF accounts of ARI under National Savings Schemes through post offices will change.
PPF Rules change: From October 1, new rules of Post Office Saving Scheme are going to change. Major changes are going to happen in Public Provident Fund (PPF). From October 1, three major rules related to PPF will change. The new rule is going to be implemented from next month. Guidelines have been issued by the Finance Ministry regarding this. The Department of Economic Affairs of the Finance Ministry has issued an order regarding Public Provident Accounts opened through post offices. Let us tell you that PPF is a popular savings plan, which gives good returns in the long term. Its maturity comes with 15 years.
What will change from October 1
Under the new rules of PPF, three changes are going to happen, in which the rules for PPF accounts opened in the name of minors, more than one PPF accounts and extension of PPF accounts of ARI under National Savings Schemes through post offices will change.
Under the new rule, interest will continue to be paid on PPF accounts opened in the name of minors till the minor turns 18 years of age. That is, PPF interest rate will be paid on attaining the age of 18 years. The maturity period will be calculated from the date when the minor becomes an adult.
More than one PPF accounts
Even in case of having more than one PPF accounts, the investor will get interest as per the scheme rate on his primary account. However, the deposit amount should not exceed the yearly ceiling limit. If there is balance in the second account, it will be linked with the primary account. However, there will also be a condition that the total amount of both the accounts should be within the annual investment limit. After linking both, the interest rate of the existing scheme will remain applicable on the primary account. At the same time, any surplus fund in the second account will be reimbursed at zero percent interest rate.
Third change
The third rule applies to NRI PPF accounts opened under the Public Provident Fund Scheme of 1968, where Form H does not specifically ask for the residency status of the account holder. The interest rate on these accounts will be as per POSA guidelines till September 30, 2024. After this, the interest rate on these accounts will become zero percent.
