The government has recently come out with new guidelines for PPF accounts, special ones that are opened for children, or those that may have multiple PPF, or even for NRIs. Some of these changes took effect on August 21, 2024, while others will be implemented from October 1, 2024.
If you’ve opened a PPF account in your child’s name, here’s the scoop: The account will accrue Post Office Savings Account (POSA) interest until the age of 18 years for your child. After they become adults, the account will start yielding the normal PPF interest rate. And here is a twist the new accounts’ maturity period will now start running only from the date that your child is 18 years old!
PPF new rules
Have more than one PPF account? No worries! The government indicates that one of them can be chosen as the primary account. This account will continue earning interest at the normal PPF rate, provided, of course, that you do not deposit more than allowed by the limit each year. If there is any balance in the second account, it will be transferred to the main account. If the total sum exceeds this limit provided by the government, then the excess amount will be reimbursed without any interest. Any other PPF accounts you have will not attract a single penny in interest from the time the account was opened.
For NRIs – If you have an active PPF account opened under the 1968 PPF Scheme, you will continue to earn POSA interest till and up to September 30, 2024. However, after that point, the account shall not accrue any interest at all.
So, as they say, let it be a wake-up call to keep abreast of the new changes to get all our PPF accounts in order.
New PPF rules from October 1, 2024, affect minor accounts, multiple accounts, and NRIs. Key changes include interest rates and account mergers. Here’s all you need to know. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
