The World Opinion

Tag: Small savings

  • Govt Announces Interest Rates For General Provident Fund, Other Funds For October-December Quarter | Personal Finance News

    New Delhi: GPF interest rate 2024: The Ministry of Finance has announced the interest rate on General Provident Fund  (GPF) and other funds for October-December quarter will be kept unchanged at 7.1 percent.

    “It is announced for general information that during the year 2024-2025, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.1% (Seven point one percent) w.e.f . 1 October, 2024 to 31th December, 2024. This rate will be in force w.e.f . 1 October, 2024,” an Office Memorandum of the Department of Economic Affairs.

    Interest rates on GPF are revised periodically according to the government’s issued notifications. The interest rate of 7.1 percent for the aforementioned period will apply to the following funds:

    1. The General Provident Fund (Central Services);

    2. The Contributory Provident Fund (India)

    3. The All-India Services Provident Fund

    4. The State Railway Provident Fund

    5. The General Provident Fund (Defence Services)

    6. The Indian Ordnance Department Provident Fund

    7. The Indian Ordnance Factories Workmen’s Provident Fund

    8. The Indian Naval Dockyard Workmen’s Provident Fund

    9. The Defense services Officers Provident Fund

    10. The Armed Forces Personnel Provident Fund

    Meanwhile, The government has left the interest rates on various small savings schemes including PPF and NSC unchanged for the third straight quarter beginning October 1, 2024.

    “The rates of interest on various small savings schemes for the third quarter of FY 2024-25, starting from October 1, 2024, and ending on December 31, 2024, shall remain unchanged from those notified for the second quarter (July 1, 2024, to September 30, 2024) of FY 2024-25,” said a finance ministry notification.

    As per the notification, deposits under the Sukanya Samriddhi scheme will attract an interest rate of 8.2 per cent, while the rate on a three-year term deposit remains at 7.1 per cent.

    The interest rates for popular Public Provident Fund (PPF) and post office savings deposits schemes too have been retained at 7.1 per cent and 4 per cent, respectively.

    The interest rate on the Kisan Vikas Patra will be 7.5 per cent, and the investments will mature in 115 months.

    The interest rate on the National Savings Certificate (NSC) will remain at 7.7 per cent for the July-September 2024 period.

  • What Will Happen If You Have Opened 2 Sukanya Samriddhi Accounts For Your Daughter? Read New Govt Guidelines | Personal Finance News

    New Delhi: The Department of Economic Affairs (DEA), Ministry of Finance has issued guidelines for processing the cases of regularization of irregularly opened accounts under various National Small Savings Schemes through Post Offices. 

    DEA in a circular, issued on August 21 issued new guidelines, identifying — lrregular NSS accounts, PPF account opened under the name a minor, More than one PPF Account, Extension of PPF account by NRI, Small Savings scheme account opened under the name of a minor (Except PPF and SSA) and Regularization of Sukanya Samriddhl Account (SSA) opened by Grandparents, other than Guardian.

    DEA has issued giudelines on condition if more than two SSY accounts are opened in the name of a daughter and also in case of accounts opened under the guardianship of grandparents. What will happen in such cases?

    (a). ln case of accounts opened under the guardianship of grandparents (who are other than legal guardian), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian.

    (b). lf more than two accounts are opened in a family in violation of Para 3 of Sukanya Samriddhi Account Scheme, 2019, then the irregular accounts shall be closed by treating it as account opened in contravention to the scheme guidelines.

    The circular said, all Post Offices are directed to obtain PAN and Aadhaar details of the account holder(s)/ guardian (if not already available) without fail and feed the same in the system before forwarding the regularization requests to this office.

    All Post Offices shall take urgent action to identify such accounts and inform account holders of the approved guidelines through all channels. All Circles/Regions/Divisions are requested to proactively track cases that need regularization, so as to avoid inconvenience to account holders of the small savings schemes.

    Who Can Open Sukanya Samriddhi Account?

    Sukanya Samriddhi Account can be opened in the name of a girl child till she attains the age of 10 years. Account can be opened in Post offices and notified branches of commercial banks. The rate of interest on Sukanya Samriddhi Account is 8% Per Annum, calculated on yearly basis, and Yearly compounded. 

    Account can be opened with a minimum of Rs 250 and Maximum Rs 1,50,000 in a financial year. Subsequent deposit in multiple of Rs 50. Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year.