What is PPF
The Public Provident Fund ( PPF ) Scheme is a statutory scheme of Central Government of India. It is a long-term saving scheme with the objective to providing old age income security to the worker in the unorganised sector and self employed individual.
Interest Rate
Generally, the interest rate is offered through the PPF account is 8% compounded anually.
The interest is calculated on the lowest balance between the fifth day and the last day of the month and and it is credited to the account on 31st of march every year. So if you want to get the maximum benifit than the amount should be deposit between 1st to 5th of the month.
The minimum deposit you can make into a PPF account in one whole financial year is Rs 500 and the maximum amount is Rs 70,000.
Duration of Investment
The duration of investment is 15 years, However the effective period works out to 16 years i.e the year of opening the account and adding 15 years to it. The account holder has an option to extend the PPF account for any period in a block of 5 years.
The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account us closed.
The amount you invest is eligible for deduction under Rs 100,000 limit of section 80C. On maturity the entire amount is including the interest is non-taxable.
Who is eligible to open PPF account & where
A PPF account can be opened by any individual ( salaried or non salaried ). An individual can open only one PPF account to which he contributes. A PPF can also be opened in the name of your spouse or children.
It can be open with a minimum deposit of Rs 100 at any branch of State Bank of India, Head Post Office, General Post Office and can also be opened at the branches of few nationalised banks like Bank of India, Central Bank of India, bank of Baroda etc.
Is it possible to withdrwal the amount deposit before maturity
Yes, one can get the loan facility on the PPF from the third year of openning your account to the sixth year. So, If the PPf account is opened during the financial year 2011-12, the first loan can be taken during the financial year 2013-14 ( the financial year is from April 1 to March 31). The loan amount will be up to the maximum of 25% of the balance in your account at the end of the first financial year.
You are allowed to withdraw 50% of the balance at the end of the fourth year. For example if the account is opened in 2011-12, and the first withdrwal was made during 2017-18, the amount you can withdraw is limited to 50% of the balance as on March 31, 2014 or March 31, 2017, whichever is lower.
The Public Provident Fund ( PPF ) Scheme is a statutory scheme of Central Government of India. It is a long-term saving scheme with the objective to providing old age income security to the worker in the unorganised sector and self employed individual.
Interest Rate
Generally, the interest rate is offered through the PPF account is 8% compounded anually.
The interest is calculated on the lowest balance between the fifth day and the last day of the month and and it is credited to the account on 31st of march every year. So if you want to get the maximum benifit than the amount should be deposit between 1st to 5th of the month.
The minimum deposit you can make into a PPF account in one whole financial year is Rs 500 and the maximum amount is Rs 70,000.
Duration of Investment
The duration of investment is 15 years, However the effective period works out to 16 years i.e the year of opening the account and adding 15 years to it. The account holder has an option to extend the PPF account for any period in a block of 5 years.
The account holder can retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account us closed.
The amount you invest is eligible for deduction under Rs 100,000 limit of section 80C. On maturity the entire amount is including the interest is non-taxable.
Who is eligible to open PPF account & where
A PPF account can be opened by any individual ( salaried or non salaried ). An individual can open only one PPF account to which he contributes. A PPF can also be opened in the name of your spouse or children.
It can be open with a minimum deposit of Rs 100 at any branch of State Bank of India, Head Post Office, General Post Office and can also be opened at the branches of few nationalised banks like Bank of India, Central Bank of India, bank of Baroda etc.
Is it possible to withdrwal the amount deposit before maturity
Yes, one can get the loan facility on the PPF from the third year of openning your account to the sixth year. So, If the PPf account is opened during the financial year 2011-12, the first loan can be taken during the financial year 2013-14 ( the financial year is from April 1 to March 31). The loan amount will be up to the maximum of 25% of the balance in your account at the end of the first financial year.
You are allowed to withdraw 50% of the balance at the end of the fourth year. For example if the account is opened in 2011-12, and the first withdrwal was made during 2017-18, the amount you can withdraw is limited to 50% of the balance as on March 31, 2014 or March 31, 2017, whichever is lower.
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