Keeping your Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) accounts active is crucial to ensuring continued interest earnings and tax benefits. The financial year ends on March 31, and missing the minimum deposit requirement can lead to penalties and account deactivation.
In this guide, we’ll break down the key details, penalties, and necessary action steps to help you stay compliant and make the most of these savings schemes.
PPF & Sukanya Samriddhi Yojana
| Feature | Public Provident Fund (PPF) | Sukanya Samriddhi Yojana (SSY) |
|---|---|---|
| Minimum Annual Deposit | ₹500 | ₹250 |
| Penalty for Non-Compliance | ₹50 per year of default + ₹500 for each year missed | ₹50 per year of default + ₹250 for each year missed |
| Account Deactivation | Becomes inactive if minimum deposit is not made | Considered defaulted if the minimum deposit is not met |
| Reactivation Process | Pay the penalty and the missed deposits | Pay the penalty and the missed deposits |
| Deadline to Deposit | March 31, 2025 | March 31, 2025 |
| Official Websites | National Savings Institute | Sukanya Samriddhi Yojana |
Ensuring timely deposits in your PPF and SSY accounts before March 31 is crucial to avoiding penalties, keeping your accounts active, and continuing to earn tax-free interest. By making just a small annual deposit (₹500 for PPF and ₹250 for SSY), you protect your long-term savings and ensure financial stability for the future.
Take action now, log in to your account, check your deposits, and make any necessary payments before the deadline!
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PPF & Sukanya Samriddhi Yojana: What Happens If You Miss the Minimum Deposit?
Public Provident Fund (PPF)
- PPF is one of the most popular tax-saving investment options in India.
- The minimum deposit requirement is ₹500 per financial year.
- If you fail to deposit at least ₹500, your account will be marked inactive.
- To reactivate your PPF account, you must:
- Pay a penalty of ₹50 per year of default.
- Deposit ₹500 per defaulted year.
- If the account remains inactive for a long time, you may face restrictions on withdrawals and premature closure.
Sukanya Samriddhi Yojana (SSY)
- SSY is a government-backed savings scheme designed to promote the education and well-being of girl children.
- The minimum deposit required is ₹250 per financial year.
- Failing to deposit the minimum amount will result in your account being classified as “defaulted”.
- To reactivate a defaulted SSY account, you must:
- Pay a penalty of ₹50 per year of default.
- Deposit ₹250 for each defaulted year.
- If the account is not revived within 15 years, it will only earn interest at the post office savings rate instead of the SSY rate.
PPF & Sukanya Samriddhi Yojana: Why Is It Important to Keep PPF & SSY Accounts Active?
- Avoid Unnecessary Penalties
- Missing the minimum deposit means you’ll have to pay extra charges to reactivate your account.
- Continue Earning High Interest
- PPF and SSY accounts offer higher interest rates than regular savings accounts.
- As of 2025, the PPF interest rate is 7.1%, while SSY offers 8% per annum.
- Maintain Tax Benefits
- Both PPF and SSY offer tax-free interest and qualify for tax deductions under Section 80C of the Income Tax Act.
- Ensure Hassle-Free Withdrawals
- Inactive accounts may have withdrawal restrictions in the future.
- Keeping them active ensures smooth transactions when needed.
Also Check: PF KYC Pending? Get It Approved Instantly from Home with Just One Click – Here’s How!
PPF & Sukanya Samriddhi Yojana: Step-by-Step Guide to Meeting the March 31 Deadline
Check Your Deposits
- Log in to your bank or post office account linked to your PPF/SSY.
- Verify if you have already deposited the minimum required amount.
Make the Deposit If Required
- If you haven’t met the minimum deposit, transfer the required amount before March 31.
- Use internet banking, mobile banking, or visit your bank/post office.
Keep a Record
- Once the deposit is made, save the transaction receipt.
- This ensures you have proof of deposit in case of any issues.
Set a Yearly Reminder
- Avoid last-minute panic by setting a recurring reminder every year in March.
- This ensures timely deposits and avoids penalties in future years.
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PPF & Sukanya Samriddhi Yojana (FAQs)
What happens if I don’t deposit the minimum amount in my PPF account?
Your PPF account will become inactive. To reactivate it, you must pay a ₹50 penalty per defaulted year plus a minimum deposit of ₹500 for each missed year.
Can I withdraw money from an inactive PPF account?
No, withdrawals are not allowed from an inactive PPF account. You must reactivate it first.
How long can I keep my SSY account without making a deposit?
Your SSY account will be marked defaulted if the minimum deposit is not made. If not revived within 15 years, it will earn a lower interest rate.
Can I reactivate my SSY account after several years?
Yes, but you need to pay ₹50 per defaulted year along with the missed minimum deposits.
What is the last date to deposit the minimum amount in PPF and SSY accounts?
The deadline is March 31, 2025.
Can I deposit more than the minimum required amount?
Yes, and it’s recommended! You can maximize your returns by contributing more to your PPF and SSY accounts.
