Major shake-up in small savings: What’s changing in PPF and Sukanya Samriddhi

Produced by: BT Desk Designed by: Manoj Kumar

PPF account limit enforced

Investors can now hold only one PPF account. Multiple accounts will be merged, with excess funds transferred, earning zero interest from July 12.

PPF rules for minors tightened

Only one PPF account can be opened per minor. Any additional accounts will earn just 4% interest, making them less attractive for long-term savings.

NRIs barred from new PPF accounts

NRIs cannot open PPF accounts and existing accounts will earn reduced interest. After September 30, these accounts will stop earning interest entirely.

Grandparents barred from opening SSAS accounts

Only legal guardians, not grandparents, can open Sukanya Samriddhi accounts for girls. Accounts opened by grandparents will be shifted to parents or legal guardians.

SSAS rules allow only two accounts per family

Families can only open two SSAS accounts unless they have twins or triplets. This reinforces stricter guidelines for small savings schemes.

NSS-87 phased out with new interest rules

National Savings Scheme accounts opened before 2002 will earn reduced interest rates. By October 1, even primary accounts will stop earning interest.

New penalties for multiple PPF accounts

Opening more than two PPF accounts results in forfeiture of interest. Any excess funds in non-primary accounts will be returned to the investor.

Lump sum refunds for excess NSS investments

Multiple NSS accounts must stay within the ₹40,000 yearly limit. Excess funds in these accounts will be returned, but interest rates have significantly dropped.

Lower interest for dormant SSAS accounts

Irregular SSAS accounts earn lower interest rates, discouraging investors from holding multiple accounts. They will be subject to stricter regulations going forward.