SpreadIt News | Digital Newspaper

Ensure Minimum balance on THESE bank accounts before March 31, Know here why

As the end of the financial year is approaching, many tax saving schemes require a minimum deposit to keep the schemes running. Some of those schemes are PPF (Public Provident Fund), NPS (National Pension System) and SSY (Sukanya Samriddhi Yojana). If you have opened these accounts are you are not able to maintain a minimum balance for the financial year then these accounts will be made inactive.

If it goes inactive, you have to unfreeze the account again before making any other investments. The entire process of reactivating your account is painstakingly long and expensive as it includes a penalty. Hence, to avoid this situation, make sure you have the minimum balance locked in your scheme accounts before the end of the financial year i.e. March 31.

Advertisement

Minimum account balance:

PPF: The minimum account balance for PPF is Rs 500. If your account freezes, you have to pay Rs 50 as a penalty every year.

Advertisement

National Pension System: For NPS account holders, the minimum deposit is Rs 1,000 every year. If your account freezes, you have to pay Rs 100 penalty every year along with your minimum contributions.

Sukanya Samriddhi Yojana: The minimum balance to keep this type of account active is Rs 250. If this account freezes, you have to pay a minimum contribution of Rs 250 along with Rs 50 for every defaulted year.

Advertisement

For more breaking news, click here.

Advertisement