New PPF rules from October 1, 2024: Three major changes to Public Provident Fund rules

Jyoti — Tue, 03 Sep 2024 08:58:32 +0000

The government has made changes in the rules of Public Provident Fund (PPF). Accounts opened in the name of minors, more than one PPF accounts and PPF accounts linked to NRIs will come under its purview.

The government issued a circular related to this change last month. What are these changes, what will be their impact? Before this, it would be better to know the basic things about PPF. PPF is a long-term investment scheme. Being a government scheme, investment in it is completely safe. Also, its returns are also attractive. PPF account matures in 15 years. The new rules will come into effect from October 1.

PPF interest rate will be applicable when the minor turns 18 years old

The government has said that the money deposited in a PPF account opened in the name of a minor will get the same interest as a post office savings account until the minor turns 18 years old. After that, the interest rate of PPF will be applicable in this scheme. The maturity period of this account will be calculated from the date the minor becomes an adult. Many people open PPF accounts in the name of minors.

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Zero interest on NRI accounts without residency details from October

The government has also issued new guidelines for NRI’s PPF accounts. Currently, NRI’s PPF accounts that do not require residency details get the same interest rate as post office savings accounts. Now this interest rate will be available only till September 30, 2024. After that, the interest rate on such accounts will decrease to zero. Therefore, NRIs need to know about their accounts properly before the new rules come into effect from October 1. If they want, they can take the advice of a financial advisor in this regard.

PPF interest rate will be applicable only on primary account

If an investor has opened more than one PPF account, then the interest rate of PPF will be applicable only on his primary account. This interest will be paid on the maximum amount of annual investment allowed in this scheme. The excess amount will be returned to the investor with zero percent interest. The balance of the second account will be put in the primary account.

Provident Fund Rules: PPF account continue investing or withdraw money after maturity, know rules instantly

Pravesh Maurya — Mon, 12 Jun 2023 04:00:02 +0000

There are many investment options available in the market, but even today a large number of people prefer to invest in government schemes. If you are looking for a government scheme for long-term investment, Public Provident Fund is a great option for you. You can invest in this scheme for 15 years at a time. PPF gives you tax benefits as well as a safe investment option.

It has been made by the government on the lines of the Provident Fund Scheme, in which everyone from employed to housewives, children can invest. If you do business and want to collect retirement funds for your future, then PPF scheme is a great investment option for you.

You can invest even after maturity

Public Provident Fund ie PPF is one of the most liked schemes for investment. Its maturity period is 15 years. But it is not that after 15 years you have to withdraw your money and close the account. You can extend it further if you want. You can extend it indefinitely in 5-5 years. After 15 years, you can extend your account in two ways.

How to withdraw money from account after maturity?

You will have to inform the bank by giving an application that your account has matured. Along with this, you will have to submit an application form, original passbook and canceled cheque. After this, after verifying all the bank details, the amount deposited in your PPF account will be transferred to your savings account.

Interest rate of PPF

The current interest rate on PPF account is 7.1 percent per annum. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in PPF in a financial year. A person can open only one PPF account in his name.

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