Small Savings Schemes In India: New Rules From October 1 For PPF, NSS, And Sukanya Samriddhi Yojana Accounts

The Department of Economic Affairs has issued new guidelines for regularizing irregularly opened savings accounts under the National Small Savings Schemes (NSS) through Post Offices. These rules, effective from October 1, 2024, are designed to address and rectify discrepancies in account openings. 

The first account will earn interest at the prevailing scheme rate. On the other hand, the second account will earn the prevailing Post Office Savings Account (POSA) rate plus 2% on the balance.  The new rule is starting from October 1, 2024, both accounts will earn 0% interest.

The first account will earn interest at the prevailing scheme rate. The second account will earn interest at the prevailing POSA rate. Notably, both accounts will earn 0% interest from October 1, 2024.   

It is important to note that no interest will be paid on the third and subsequent accounts. The principal amount will be refunded.

The POSA interest rate will be applied until the minor reaches 18 years of age. After this age, the applicable interest rate will be applied. Notably, the maturity will be calculated from the minor’s 18th birthday.

The primary account will earn interest at the scheme rate if deposits remain within the annual limit. The balance from any additional accounts will be merged into the primary account. Any excess amounts will be refunded with 0% interest. Adding further, the accounts beyond two will earn 0% interest from their opening date. 

Accounts opened by grandparents (who are not legal guardians) must transfer guardianship to a legal guardian or natural parent. If more than two accounts are opened in violation of scheme guidelines, the extra accounts will be closed.