The New Rules For PPF, SCSS and Time Deposit Scheme: Good News For Senior Citizens!

Keep track of the recent changes introduced by the government in PPF, SCSS and time deposits here as we explain all the changes

Good News For Senior Citizens

The government has recently made a few rule changes in some of its small saving schemes. This latest financial news includes changes in the PPF premature interest calculation and time deposit scheme, and the extension of the duration of the Senior Citizen Savings Scheme.

  • SCSS offers a lucrative interest rate of 8.2%, the best among the government saving schemes

  • Premature withdrawal is a probable scenario in PPF, given its lengthy duration of 15 years

  • Post office time deposits are available in durations of 1, 2, 3 and 5 years

Recent changes in the small saving schemes are as follows -

Senior Citizen’s Saving Schemes (SCSSs)

An individual can open an SCSS account within three months of receiving the retirement benefits and the proof of date of disbursement of the retirement benefits. This was mentioned in a gazette notification dated 9 November 2023. Earlier, this duration was set as one month. The notification also confirmed that interest on the account balance will be calculated as on the date of maturity, or extended maturity. 

Public Provident Fund (PPF)

Changes in PPF were introduced under the Public Provident Fund (Amendment) Scheme, 2023. The changes are related to premature closure regulations. Earlier, the premature closure of the PPF account attracted a penalty in the form of a lowering of interest income. 1% lower interest was credited to the closed PPF account, which would be applicable from the inception or extension of the account. 

After the change, the interest rate from the beginning of the five-year block will be considered, instead of the rate from inception/extension. This will change the penalty calculation method in the case of premature closure of the PPF account.

Also ReadSCSS Or PPF Or SSY: Which Savings Scheme Is The Best For You?

National Savings Time Deposit 

The premature withdrawal rule from the five-year savings time deposit has also been changed. Earlier, in the case of withdrawals after four years, the interest rate of the three-year time deposit was applied. 

Under the new rules, if a deposit is withdrawn after four years of opening the account, the interest rate of the Post Office savings account will be applied. Presently, this means a revised interest rate of 4% instead of 7%. Notably, the five-year deposit garners 7.5% per annum.


The relaxed duration in SCSS combined with the rules changes in premature withdrawals are aimed at increasing the saving propensity and consistency among individuals. Apart from these schemes, popular government schemes like Sukanya Samriddhi Yojana, National Savings Certificate, Kisan Vikas Patra, and Post Office Monthly Income Scheme also generate an interest income of more than 7%. Take your pick from these small saving schemes and enjoy the sovereign assurance of your returns.

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Also ReadDon’t Miss Out! PPF Interest Rates Projected To Soar In The Upcoming Quarter 


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