All About Public Provident Fund (PPF) Account

Public Provident Fund is the most popular and safest saving instrument in India and a good number of citizens in the country have a PPF account but they don’t  really have total knowledge about PPF. Do you Have ? Public Provident Fund (PPF) scheme is very popular investment in India because the money you invest and the interest you earn in PPF is non-taxable that means maturity amount is fully exempted from tax as well under Section 80C.

Important Features of PPF – 

• PPF stands for Public Provident Fund

• PPF is a government backed, long term, retirement savings instrument.

• PPF has a 15 year lock in for longer savings

• PPF offers loan against the account which can help you during occasions like a wedding in the family, further studies of your children, etc

• PPF require the minimum investment of Rs. 500 p.a. and maximum of Rs. 1 lakh p.a.

• The interest rate which currently stands at 8.8% for this fiscal year and can be changed over the period of time.

• An NRI can't open a PPF account. However 'Provided that if a resident who subsequently becomes a Non Resident during the currency of the maturity period prescribed under the PPF scheme may continue to subscribe to the Fund till its maturity, on a Non Repatriation Basis.' So if you open it as an RI, and during the 15 year tenure become an NRI, you can continue to invest, but on a non-repatriable basis.

• You can make up to 12 investments in a year into your PPF account.

• Deposits can be made in lump-sum or in 12 installments

• Joint account cannot be opened

• An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/- 

• Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.

• Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office/Bank to another.     

• The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts. 

• Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on

• Premature closure is not allowed before 15 years

• Withdrawal is permissible every year from 7th financial year from the year of opening account.

• Loan facility available from 3rd financial year.     

Benefits of PPF Account -   

• Best for long-term investments & retirement planning

• Tax-free risk free returns

 

Documents required to open a Public Provident Fund Account (PPF)- 

• Passport, PAN Card, Aadhar Card, Driving License, Voter’s ID, Employer’s letter, Utility Bill, Rental/Lease Agreement, Bank Account Statements, Ration Cards, Signed Cheque

• Photographs

• The account opening form, along with nomination form if nominees are being named.

• In case of minors, age proof will be required i.e. the minor’s birth certificate or school certificate.

How to Open PPF A/C - You can open a PPF A/C at any Post Office / Nationalised Bank / Private Bank or by Online A/C can also be opened through Bank's Website

Download PPF Form

PPF Calculator