There is big news for investors investing in Public Provident Fund (PPF) . The government has made 3 important changes in the rules related to PPF. In such a situation, if you invest in PPF, then it is important for you to know these rules.
Let me tell you that the Department of Economic Affairs of the Ministry of Finance has recently issued new guidelines regarding PPF accounts opened in the name of a child, more than one PPF accounts and PPF accounts by NRIs under National Small Savings (NSS) schemes through post offices. Let us know what will be the effect of these changes?
1. PPF account opened in the name of the child
The government has said that interest will be paid at the Post Office Savings Account Rate (POSA) on the PPF account opened in the name of the child till the child turns 18 years old. After that, the interest rate applicable for PPF will be applicable. Maturity will be calculated from his/her 18th birthday. Let us tell you that many people open PPF account in the name of their child.
2. Rules for having more than one PPF account
According to the new guidelines issued by the government, if someone has opened more than one PPF account, then interest will be paid on the primary account at the current interest rate. The second i.e. secondary account will be merged with the first one. Provided that the primary account is within the investment limit applicable each year. After the merger, the primary account will continue to get interest as per the current scheme rate. Note that except for the primary and secondary account, all other accounts will not get any interest from the day they are opened. The amount deposited in it will be returned at zero percent interest.
3. PPF account rules for NRIs
Only current NRI PPF accounts opened under the Public Provident Fund Scheme (PPF), 1968, where the residential status of the account holder is not specifically asked for in Form H, will be given POSA interest rate to the account holder (Indian citizen who has become an NRI during the tenure of the account) till September 30, 2024. Thereafter, the above account will get zero per cent interest.
