The norms of some small savings schemes including General Provident Fund (GPF) and Senior Citizen Savings Scheme (SCSS) have been changed by the government recently. Here are some changes you should be aware of,
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| Savings Scheme's changes |
General Provident Fund, relaxation of norms
For SCSS, the government has relaxed the time limit for opening an account from one month of receiving pension benefits to three months. Spouse of Government servant can also invest the financial assistance amount in the scheme. The account holder can extend the account for any number of blocks of three years each, instead of once.
The interest rate on the extended account will be the same as the rate applicable on the maturity date or extended maturity date.
For GPF, the government has amended the rules for early closure of accounts. Subject to certain conditions, the account can be closed before completion of 15 years for reasons such as higher education, marriage, illness etc.
The rate of interest for early closure will be the rate applicable to Post Office Savings Account.
The government has also changed the interest rate for early withdrawals for 5-year deposits.
If the deposit is withdrawn after four years from the date of initiation, the rate of interest applicable to the Post Office Savings Account will be the same instead of the rate applicable to the 3-year term deposit.
These changes are aimed at making small savings schemes more attractive and flexible for investors. More details about these schemes and their interest rates can be found on the official website of the Department of Posts.