PPF: If you hold a Public Provident Fund (PPF) and a Sukanya Samriddhi Yojana (SSY) account but have not made any deposits during this financial year, it is essential to contribute some funds by 31 March 2025 to keep your accounts active. Failure to deposit money into your PPF and SSY accounts may lead to their inactivity or closure. Additionally, if you do not meet the minimum deposit requirements, you will incur a penalty to reactivate them. It is crucial to maintain a minimum investment in these schemes to demonstrate that your account remains active.
The minimum annual deposit is Rs 500
For PPF account holders, the minimum annual deposit is Rs 500, which must be made to avoid account closure. The deadline for this deposit is 31 March 2023, and if you miss this date, a penalty of Rs 50 will be charged for each year of non-compliance. The current interest rate for PPF accounts is 7.1%.
A minimum deposit of Rs 250
For those with a Sukanya Samriddhi Yojana account, a minimum deposit of Rs 250 is required annually. Similar to the PPF, failing to deposit this amount will also result in a Rs 50 penalty. The interest rate for the Sukanya Samriddhi Yojana account is currently 8.2%.
Tax savings option
Investing in both of these schemes allows you to benefit from tax exemptions under Section 80C of the Income Tax Act, enabling you to reduce your total taxable income by up to Rs 1.5 lakh through annual investments.