small investors There are many types of saving schemes run in the Post Office. Investors choose the right option for themselves from these saving schemes according to their savings. If you also invest in the post office savings scheme, then there is a big news for you. Actually, the Central Government has said through a notification that it will stop paying interest on National Savings Scheme (NSS) accounts from October 1. The NSS interest rate for the period from March 1, 2003 to September 30, 2024 was 7.5% per annum. In this, depositors were asked to withdraw their money by 30 September.
was launched in 1987
NSS-87 was launched in 1987 and decommissioned in 1992. A new series, NSS-92, was launched in 1992, but was discontinued in 2002. No other NSS scheme has been launched since then. NSS-87 allows withdrawal once in a year, but NSS-92 has no withdrawal limit. NSS should not be confused with National Savings Certificate (NSC), which is a completely different small savings scheme. There has been no change in NSC.
Finance Ministry had issued notification
The Finance Ministry had on July 12 issued a circular regarding multiple accounts in the Small Savings Scheme, stating that all accounts opened under NSS-87 and NSS-92 will get zero percent interest from October 1, 2024. Gazette notification in this regard was issued on August 29. The ministry said, “Under these rules, no interest will be given on the amount deposited in the account of National Savings Scheme customers on or after October 1, 2024.” This recent change of government will put a burden on those who used to view these investments as financial security and keep them as long term investments. The government may consider providing a lump sum benefit for transferring such funds to alternative schemes like National Pension System (NPS) or Provident Fund, which provides for lump sum tax-free transfer from Employees' Provident Fund to NPS accounts under the Finance Act 2016. Is the same as permission.”
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