The public provident fund account or PPF is a popular savings scheme. Investors can open a PPF account either in the post office or at any bank.
PUBLIC PROVIDENT FUND (PPF) ACCOUNT
It is a savings scheme with a tenure of 15 years.
Any resident of India can open a PPF account. Only one account can be opened all across the country, either in the post office or any bank.
PPF ACCOUNT INTEREST RATES
The interest rate on a PPF account must be applicable as notified by the Ministry of Finance on a quarterly basis.
The current PPF account interest rate is 7.1 per cent per annum (compounded yearly).
PPF ACCOUNT INVESTMENT
The minimum deposit in a PPF account is Rs 500 in a financial year and the maximum deposit is Rs 1.50 lakh in a fiscal year.
The amount can be deposited in any number of installments in a FY in a multiple of Rs 50 and maximum up to Rs 1.50 lakh.
PPF INCOME TAX SAVING
Investment in PPF qualifies for deduction under section 80C of the Income Tax Act. Interest earned on a PPF account is tax free under the Income Tax Act.
PPF LOAN, MATURITY, WITHDRAWAL
Subscribers can avail a loan from a PPF account. Loans can be taken after the expiry of one year from the end of the fiscal year in which the initial subscription was made.
A subscriber can take one withdrawal during a financial after five years excluding year of account opening.
The PPF account will attain maturity after 15 financial years excluding the fiscal, when the account was opened.
