The first week of the month of March is about to pass. This month is the last month of the financial year 2023-2024. After this the new financial year will start. You will definitely have to complete some work before the new financial year. If you have invested in schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY), then deposit the minimum amount in it by 31st March, otherwise your account may be closed (inactive). Although it is not that you cannot reopen a closed account later, but for this you will have to pay unnecessary penalty. Therefore, it is better that this work is completed on time.

What are the rules regarding PPF and Sukanya Samriddhi?

At least Rs 500 have to be deposited annually in PPF and at least Rs 250 in Sukanya Samriddhi Yojana. If the minimum amount is not deposited, your account is closed. If these accounts are closed, then to reopen them, minimum amount per year (Rs 500 for PPF and Rs 250 for Sukanya) + Rs 50 default fee has to be deposited on every year basis.

That means, if you do not deposit money for two years, then you will have to pay a fine of Rs 100 for two years based on the minimum balance of two years and Rs 50 per year. Not only this, in case of closure of PPF and Sukanya Samriddhi accounts, you will neither be able to make partial withdrawals from them nor will you be able to avail the benefit of loan facility on PPF.

How much interest on PPF and SSY

Let us tell you that at present 7.1% interest is being given on the amount deposited in Public Provident Fund and 8.2% interest is being given on Sukanya Samriddhi Account. In the PPF scheme, income tax exemption is available on all three returns, maturity amount and interest.

Accounts can be opened for 15 years, which can be further extended in blocks of 5 years. Whereas tax benefit can be availed in Sukanya Samriddhi Account under Income Tax Act 80C. Both these accounts can be opened in the post office or authorized branch of the bank. SSY account can be opened after the birth of a girl child before she turns 10 years of age.

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, It is worth noting that before the start of every quarter, the Finance Ministry reviews and announces the interest rates of government savings schemes. In such a situation, it is expected that from September 2022, the Finance Ministry can announce to increase the interest rates on the savings schemes of the government from 0.50 to 0.75 percent.

On June 30, 2022, even after the RBI’s decision to increase the repo rate twice, the Finance Ministry did not change the interest rates of small savings schemes. But for the third quarter of the current financial year on September 30, 2022, when the Finance Ministry will review the interest rates of these savings schemes, then the interest rates on these savings schemes can be increased.

Interest rates will increase on savings schemes!

In fact, after the RBI increased the repo rate, many banks have increased the interest rates on deposits. In such a situation, it is expected that the interest rates on these government savings schemes can also be increased. At present, Public Provident Fund (PPF) gets 7.1 percent annual interest rate, while NSC is getting 6.8 percent annual interest.

At present, 7.6 percent interest is available on Sukanya Samridhi Yojana and 7.4 percent on Senior Citizen Tax Saving Scheme. Apart from this, 6.9 percent interest is being available on Kisan Vikas Patra. Now people are hopeful that the government can increase the interest on these schemes from July.

No change since April 2020

Significantly, there has been no change in the interest rates of small savings schemes since the first quarter of the year 2020-21. Earlier, the Finance Ministry said in a notification, the interest rate on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, for the fourth quarter (January). will remain unchanged from the current rates applicable for Let us tell you that the interest rates for small savings schemes are revised on a quarterly basis.

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