Why you need to deposit money in PPF, SSY, NPS every year

PPF: Mandatory minimum investment. is required in PPF Is 500 to keep it active. You need to write an application to the bank or post office with which the account was opened so that it can be revived.

You have to pay with the application 50 for each default year, 500 for all the years the account was in default, and 500 as re-subscription fee for the year in which you revive the account.

While there is no maximum contribution limit in PPF, you get tax exemption and interest only up to 1.5 lakh per financial year.

Unless you revive the account, you cannot take a loan or make a partial withdrawal on the PPF balance after three and five years respectively. The outstanding balance in the closed account earns interest till maturity. Default accounts cannot be revived after maturity and if your account is closed at the time of maturity, you cannot carry forward the account for the next five years.

NPS: Minimum contribution requirement in NPS Tier I accounts 1,000 per financial year, with no upper limit. There is no minimum mandatory contribution for Tier II accounts. By default, your Tier 1 account will be frozen. Account holders doing online transactions can directly regularize it by paying a penalty. 100 together 1,000 as arrears for each defaulted year. Offline account holders should write in their presence (POP) to initiate the process of unfreezing.

SSY: The parent/legal guardian has to pay at least 250 to keep the SSY account active. default carry 50 fine per year in default.

Failure to regularize the account will not affect the interest-earnings and the balance will earn interest till the maturity period of 21 years. Note that since deposits are allowed in SSY only for 15 years, the account can be revived before that.