The lock-in period of PPF account is 15 years from the date of opening.
After the 15 years lock-in period you can extend its maturity by submitting an application. You can extend your PPF account for a block of 5 year.
After the lock-in period of 15 years subscriber can be withdrawn full amount. As well subscriber can withdraw partial amount before maturity period from the 7th financial year, of an amount that does not exceed 50% of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.
you can extend your PPF account for a five year block by submitting Form H in bank within one year from the date of maturity. You can deposit money during the tenure. After completion of five year you can again apply for extension as there is no limit in the number of extensions.
Yes, you can. Loan facility can be available from 3rd financial year up to 5th financial year. Read more.
If you are failed to invest minimum amount in any financial year, then account will be deactivated. It can be reactive by pay Rs.50 as penalty for each inactive year. Also you have to deposite Rs.500 for each inactive year's contribution.
Ofcource, you can. You can define your nominee to one or more persons. You can also define shares to each nominee. In case death of account holder then the balance amount will be paid to his nominee or legal heir even before 15 years. Nominees or legal heirs are not eligible to continue the account of the deceased.
The Public Provident Fund Scheme, 2016 made an amendment in PPF Scheme, 1968 to facilitate premature closure of PPF account. You can opt for premature closure of your PPF account after completion of 5 years for medical treatment of family member and for your higher education. In case of premature closure, you are required to pay 1% of your balance amount as penalty to bank.
PPF interest rate is changing every year so subscribers should keep eye on it. However, there is no pre-determined dates when the ppf interest will be change. But if you are subscriber then you need to keep in mind that the PPF interest rate revision will usually happen during the last week of March in an financial year and will come into effect during 1st April. Some times the revision in Interest Rate will change during April and the same will be implemented / comes into force during April 1st week of the same year.
Yes, Deposits made under this scheme can be claimed as deductions under section 80C. Interest earned on these deposits are also tax-free.
You can invest Rs. 1,50,000 in PPF and you can save applicable tax on this amount.
A PPF account holder can deposit a maximum of Rs 1.5 lacs in his/her PPF account (including those accounts where he is the guardian) per financial year. Any amount deposited in excess of Rs 1.5 lacs in a financial year won't earn any interest.
There is no monthly deposit provision so you can deposite more than 2 times but maximum 12 times in a financial year.
All the nationalized banks are good to open ppf account. Generally, SBI is India's largest and trusted bank so most people's go with SBI.
The maximum lock-in period of PPF account is 15 years from the date of opening.
Yes, you can withdraw partial amount from the 7th financial year.
The Public Provident Fund (PPF) is a savings-cum-tax-saving scheme is introduced by National Saving Institute of the Ministry of Finance and it's not a product of any perticular bank so ppf interest rate will same for all the banks as well as post offices.
Yes, you can withdraw partial amount before matuarity.
PPF is a very good investment/tax saving option.
Yes, you can. Loan facility can be available from 3rd financial year up to 5th financial year.
PPF partial withdrawals are not taxable.
PPF falls in the category of EEE (Exempt Investment, Exempt Return, Exempt Maturity or Withdrawal).Thus, both the deposits and withdrawals are totally tax free.
Yes, PPF is very safe and long term investment.
PPF interest is no longer fixed and is now depends on government bonds. The interest calculation is done every month and calculated on lowest balances in account between 5th and last day of the month. So if you would like to earn interest for that month then deposit amount on or before 5th of the month.
A family can have multiple PPF accounts: one for each father, wife and one for each child, and so on.
Yes, housewife can open PPF account. In addition, husband may deposit own money into her PPF. But since she doesn't have any taxable income, she cannot avail any tax benefit for it. And husband cannot claim any tax benefit on her PPF investments.
Yes, you can. Amount can be deposited in cash, cheque or via demand draft.
No, as per rule, One person can keep only one PPF account but one can maintain another ppf account of spouce/chilren on behalf of them.
Most nationalized banks are providing facility for ppf account but it depends on branch category. Visit here for List of Banks offering PPF Account & Online Fund Transfer Facility
Yes, you can change deposit amount. You have to deposit the minimum of Rs. 500 in a financial year and maximum Rs. 1, 50,000.
You should close your current ppf account to withdraw money after matuarity and you will get your money.
Yes, you can withdraw partial amount from the 7th financial year.
No, It's tax free.
Yes, you can extend block of 5 years after 15 years.
You can extent with blocks each of 5 years.
EPF is a special mandatory savings scheme only for salaried employees working in government and private sector subject to certain thresholds. Non salaried individuals such as businessmen, self employed professionals are not covered under EPF. The EPF scheme may be run by the respective employer through its own trust or by way of depositing the contributions with EPFO, a government run body that manages EPF money. A salaried person who is covered under EPF is eligible to also open a PPF account.
No, it is not. PPF invensts in government bonds. These bonds are backed by the Government of India. The government securities are considered the most secure investment. Your investment is as much risk as the risk of government default. So your investment in PPF are very safe.
ELSS (Equity linked savings scheme) is also offered tax benefits under the new Section 80C of Income Tax Act 1961 like PPF. It can give better returns (17% or higher) but it's risky as compare to PPF. Know more here : PPF vs ELSS