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Business News/ Money / Personal Finance/  Your PPF, SSY, Post office deposits, other small savings schemes may get frozen by end of this month. Here is why
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Your PPF, SSY, Post office deposits, other small savings schemes may get frozen by end of this month. Here is why

Investors must submit their Aadhaar number by the end of September or risk having their investments in small savings schemes like PPF, SSY frozen

As per Finance Ministry's notification, small savings subscribers will have to submit their Aadhaar number by 30th September 2023.Premium
As per Finance Ministry's notification, small savings subscribers will have to submit their Aadhaar number by 30th September 2023.

Investors of the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post office deposits, and other small savings schemes must submit their Aadhaar number to the post office or bank branch by the end of this month. Missing this important deadline will result in getting their small savings investments frozen.

PAN and Aadhaar number has become mandatory for making investments in small savings schemes like PPF, SSY, Senior Citizens Saving Scheme (SCSS), etc. The Ministry of Finance issued notification in this regard on 31st March 2023.

September 30 deadline for small savings schemes investors

As per Finance Ministry's notification, small savings subscribers will have to submit their Aadhaar number by 30th September 2023, if they have not submitted their Aadhaar number while opening PPF, SSY, NSC, SCSS, or any other small savings account. In case of non-seeding of an Aadhaar number, one's small savings account will be frozen after six months of account opening. For existing subscribers, their account will be frozen from 1st October 2023, if they fail to furnish their Aadhaar number with their small savings account within the given deadline.

Read: Finance Ministry's notification below

 

Finance Ministry's notification
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Finance Ministry's notification

What are Small savings schemes?

Small savings schemes are investment avenues that allow individuals to save and accumulate wealth. These are government-backed schemes and, therefore, have low volatility. Your investment in many of these schemes qualifies for tax benefits. Some common schemes eligible are the SCSS and PPF. You get benefits under Section 80C of the I-T Act, going up to 1.5 Lakhs.

The government reviews the rate every quarter and for the July-September 2023 quarter, the interest rates on small savings schemes were hiked by 30 bps. This revision was particularly for the 1-year and 2-year term deposits and 5-year recurring deposits.

Small savings schemes for the period July-September 2023

SCSS - 8.2%

Sukanya Yojana - 8.0%

NSC - 7.7%

Kisan Vikas Patra - 7.5%

5-Year Deposit - 7.5%

PO-Monthly Income Scheme - 7.4%

PPF - 7.1%

2-Year Deposit - 7.0%

3-Year Deposit - 7.0%

1-Year Deposit - 6.9%

5-Year RD - 6.5%

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 02 Sep 2023, 07:56 AM IST
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