PPF New Rules: What If You Open Second Account By Mistake? Check Interest Rates For FY 2024–25

PPF Account New Rules: The Public Provident Fund (PPF) is one of the maximum dependable long-term financial savings choices in India, providing assured returns at the side of horny tax advantages. It is a well-liked selection for people making plans for retirement or long-term monetary objectives. However, regardless of its recognition, there may be nonetheless confusion amongst many traders in regards to the laws round keeping up more than one PPF accounts. 

A continuously requested query is: Can an individual legally cling multiple PPF account? And what occurs if a 2d account is opened by means of mistake? In this newsletter, we will be able to information you thru the entire not unusual questions that can are evoked.

PPF New Rules: One Account Per Person

According to govt pointers, a person is authorized to carry just one PPF account of their title, as in keeping with the Public Provident Fund Act, 1968. Opening any other account—irrespective of whether or not it is in a distinct financial institution or submit administrative center—is regarded as a contravention of laws. If a 2d account is created, it’s deemed invalid. While the foremost quantity is refunded, no hobby is paid at the stability.

PPF New Rules: Accounts for Minor Children Are Permitted

While more than one accounts in a single’s personal title are prohibited, people are allowed to open a PPF account on behalf of a minor kid. In such instances, the mother or father or dad or mum manages the account. However, there’s a cap—the mixed annual deposit throughout each accounts (mother or father and kid) can’t exceed ₹1.5 lakh. For instance, if ₹1 lakh is deposited within the mother or father’s account, best ₹50,000 may also be added to the kid’s account all through the similar monetary 12 months.

PPF New Rules: No Joint Accounts

PPF accounts are strictly person. Joint accounts aren’t authorised—now not even between spouses or between a mother or father and a kid. Even in terms of a minor’s account, best the kid’s title seems formally, whilst the dad or mum oversees its operation.

PPF New Rules: What If You Open Second Account By Mistake?

 If you’ve mistakenly opened a 2d PPF account, it’s steered to inform your financial institution or submit administrative center in an instant. In maximum instances, the second one account will probably be closed, and the volume refunded—however with none gathered hobby.

PPF New Rules: Can NRIs cling PPF accounts?

Non-Resident Indians (NRIs) aren’t allowed to open new PPF accounts. However, if an individual opened a PPF account once they had been a resident and later turned into an NRI, they’re allowed to proceed contributing till adulthood (15 years), however can’t prolong it past that duration. 

PPF Interest Rate For FY 2024-2025

Currently providing an rate of interest of 7.10 in keeping with cent in keeping with annum (topic to periodic revision) for FY 2024-2025, PPF remains to be a tax-exempt and low-risk financial savings device. It enjoys EEE (Exempt-Exempt-Exempt) standing, that means contributions, hobby, and adulthood proceeds are all tax-free. The default tenure is 15 years, with the approach to prolong in blocks of 5 years. Investors can give a contribution between Rs 500 and Rs 1.5 lakh yearly.