Govt relaxes norms for PPF (Public Provident Fund), Senior Citizen’s Savings Scheme, and time deposit account. Know here

The government has relaxed the norms for various small savings schemes. These include the Public Provident Fund (PPF), the Senior Citizens Savings Scheme (SCSS), and the Time Deposit Scheme. These norms were relaxed according to a gazette notification dated November 9, news agency PTI reported. Currently, the government offers nine types of small savings schemes.

New PPF rule

In case of PPF, some changes have been made in the notification regarding premature closure of accounts. This scheme may be called the Public Provident Fund (Amendment) Scheme, 2023, said the notification.

Senior Citizens Savings Scheme

For the Senior Citizens Savings Scheme, the new norms currently provide three months to open an account per month.

According to the gazette notification, one can open an account under the Senior Citizens Savings Scheme within three months from the date of receipt of the retirement benefits and proof of the date of disbursement of such retirement benefits.

National Time Savings Deposit Scheme

If a deposit in a five-year account is withdrawn prematurely after four years from the date of opening the account, interest would be payable at the rate applicable to the Post Office Savings Account, the notification said.

As per the current norms, if a five-year Time Deposit account is closed after four years from the date of deposit, a rate admissible for a three-year Time Deposit account would be applicable to calculate interest.

For the quarter October-December 2023, the interest rates on small savings schemes are as follows:

PPF – 7.1%

SCSS – 8.2%

Sukanya Yojana – 8.0%

NSC – 7.7%

PO-Scheme Monthly Income – 7.4%

Kisan Vikas Patra – 7.5%

1 Year Deposit – 6.9%

2 Year Deposit – 7.0%

3 Year Deposit – 7.0%

5 Year Deposit – 7.5%

5-Year RD – 6.7%

Tax Benefits of the Small Savings Scheme

Your investment in many of these schemes qualifies for tax benefits. These are usually deductions under various sections of the Income Tax Act. Some eligible joint schemes are the SCSS and the PPF. You get benefits under Section 80C of the IT Act, up to 1.5 Lakh

-With agency input

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Updated: 11 November 2023, 02:55 PM IST

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