Public Providend Fund
Salient features including Tax Rebate :
- 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/-
- Joint account cannot be opened.
- 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 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.
- Maturity value can be retained without extension and without further deposits also.
- Premature closure is not allowed before 15 years.
- Deposits qualify for deduction from income under Sec. 80C of IT Act.
- Interest is completely tax-free.
- Withdrawal is permissible every year from 7th financial year from the year of opening account.
- Loan facility available from 3rd financial year.
No attachment under court decree order.
The PPF account can be opened in a Post Office which is Double handed and above.
Interest payable, Rates, Periodicity etc.
Interest payable, Rates, Periodicity etc.
From 1.01.2018, interest rates are as follows:-
7.6% per annum (compounded yearly).
Minimum Amount for opening of account and maximum balance that can be retained
Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
Deposits can be made in lump-sum or in 12 installments.