Good news for Small Savings investors! The government has made changes to rules in various schemes like Public Provident Fund (PPF)
and Senior Citizens Savings Scheme (SCSS). Now, you have 3 months to open an SCSS account, up from the previous one-month window.
New SCSS Account Opening Window
A recent gazette notification states that individuals can open an SCSS account within 3 months from receiving retirement benefits, effective from November 9.
Upon maturity or extended maturity, the scheme ensures a fixed-rate interest.
In the case of Public Provident Fund (PPF), there are updates on premature closure conditions.
Referred to as the Public Provident Fund (Amendment) Scheme, 2023, these changes aim to streamline the premature closure process.
Altered Withdrawal Rules for National Savings Time Deposit Scheme
Changes also extend to the National Savings Time Deposit Scheme. If you withdraw an amount deposited in a 5-year tenure account prematurely after 4 years, the interest will align with the Post Office Savings Account rate. Previously, the interest was based on a 3-year time deposit rate.
Management and Variety of Small Savings Schemes
The Department of Economic Affairs under the Finance Ministry oversees nine small savings schemes,
including Recurring Deposit (RD), Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY),
Mahila Samman Saving Certificate, Kisan Vikas Patra (KVP), National Savings Certificate (NSC), and Senior Citizens Savings Scheme (SCSS).