The new PPF rules are here, and they're going to impact how people save and invest. Starting October 1, 2024, here are the key changes:
PPF Accounts in Minors' Names: If you've opened a PPF account in your child's name, the maturity period will now be calculated from the day they turn 18. Until then, the account will earn interest equivalent to a Post Office Savings Account (POSA).
Multiple PPF Accounts: If you have multiple PPF accounts, only your primary account will earn interest. You can merge your accounts, but if you don't, the second account will stop earning interest.
NRI PPF Accounts: If you're an NRI and have a PPF account, you'll no longer be able to extend the account's tenure. Plus, if your residency status wasn't declared in Form H, your account will earn zero interest from October 1, 2024.
Interest Rates: The interest rate for PPF accounts remains at 7.1% per annum, but if you have multiple accounts, the excess amount will be returned without interest.
Account Regularization: If you have irregularly opened accounts, you'll need to regularize them to avoid losing interest. This includes accounts opened by grandparents instead of guardians.
These changes aim to streamline PPF accounts and ensure compliance with regulations. It's essential to review your accounts and take necessary actions to avoid losing interest.