Every SSY, PPF, and NPS Account holder must complete a minimum deposit to activate their account without losing benefits before closing the financial year cycle on March 31st, 2024.
Recently, the number of people investing in small savings schemes has increased. Most of these schemes, including the National Pension System, Sukanya Samriddhi, and Public Provident Fund, come with guaranteed returns. If you are investing in these, be alert, as March 31 is the last date. If you haven’t done so yet, you should do it quickly.
Despite the various investment options available to us, many people prefer to invest in small amount savings schemes. These schemes have seen a rise in deposits in recent times. The government provides support, and the interest rates are attractive. These schemes offer guaranteed income, and you can make deposits even in small amounts. The Center revises the interest rates of Small Savings Schemes every 3 months, with the Public Provident Fund (PPF), National Pension System (NPS), and Sukanya Samriddhi Yojana (SSY) being the most popular.
Among the many savings schemes brought by the Center to provide financial security to the people, the main one is the facility of tax savings of up to Rs.1.50 lakh in a financial year under Section 80c of the Income Tax Act. In NPS, a maximum of Rs. 2 lakhs can get tax benefits. These schemes are available in banks and all post offices throughout the country.
Sukanya Samriddhi Account is specially meant for girls, while the Public Provident Fund is suitable for employed persons. By investing in these schemes, you can get good returns in the long run. These savings schemes have a minimum deposit, which means that once you join the scheme, you have to pay a definite amount every year. Otherwise, the account will be frozen. If it is not reactivated, it may also close, and reopening it will incur a penalty.
The minimum deposit in the Sukanya Samriddhi Scheme is Rs. 250, and a maximum of Rs. 1.50 lakh can be deposited. It can be built at any time of the year, and you can also pay for instalments. That means you need to deposit at least Rs. 250 in a year.
The minimum investment in the PPF scheme is Rs. 500, and a maximum of up to Rs. 1.50 lakh can be deposited. There is triple tax benefit here, meaning tax can be deducted on investment, interest income, and total maturity value.
These schemes follow the April to March financial year cycle. This means that those who open the account have to deposit a minimum amount (minimum deposit) every financial year. As the financial year is going to end on March 31, those who have joined these schemes should deposit the minimum amount now if they haven’t already. Otherwise, the account will be suspended, and a penalty will be charged for reopening it.
