The financial year 2019-20 will end tomorrow i.e. March 31. With this, the last day to deposit a minimum amount in some of the investment avenues will also come to an end. It is important to note that some investment options require users to deposit a minimum amount every financial year to ensure that the account remains active.

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Here are some of these avenues:

PPF

PPF is majorly a retirement-focused investment instrument that comes with EEE (Exempt-Exempt-Exempt) tax status. The maturity amount and the overall interest earned during the period of investment are tax-free.

To keep the PPF account active, customers are required to at least make a minimum investment of Rs 500 in it every financial year. Failure to do so would result in the account being labeled as a dormant account. Also, a penalty of Rs 50 will be levied every year for the number of years of default.

For the revival of dormant PPF account, investors will then be required to write a request to the bank or post office where the account is held for activation of the account. Secondly, they will be required to pay a sum of Rs 500 as a deposit and Rs 50 as the penalty for each year of inactivity.

NPS

NPS, a government-run investment scheme, gives the subscriber the option to set the preferred allocation to different asset classes. NPS offers two kinds of accounts — Tier 1 and Tier 2 — for instruments including government bonds, equity market, and corporate debt.

While the Tier 1 NPS account is strictly a pension account, the Tier 2 account — known as an investment account — is voluntary savings account associated with the Pension Regulatory Authority of India (PRAN).

For NPS subscribers, a minimum contribution of Rs 500 is required in Tier 1 account while for Tier 2 account, Rs 250 is needed. The account becomes inactive in case the minimum contribution is not made in the financial year.

Sukanya Samriddhi Account

Sukanya Samriddhi Account (SSA) is a deposit scheme for the girl child.

In order to keep the Sukanya Samriddhi Account active, a minimum deposit of Rs 250 is required in a financial year. If this is not done, the account gets discontinued and can be revived with a penalty of Rs 50 per year with a minimum amount required for deposit for that year.

(Edited by : Jomy)

First Published:Mar 30, 2021 5:26 PM IST