PPF: 10 THINGS YOU SHOULD KNOW ABOUT PUBLIC PROVIDENT FUND
The importance of financial planning in our lives can't be neglected. It helps to create a budgeted plan and achieve our short and long term goals.
Our present financial plans help us to improve our standard of living and also make us future secure. And moreover, if you are a homemaker, it becomes your moral responsibility to analyze the needs and requirements of your family and balance all the financial needs. Well, one safe solution to your financial planning journey is PPF( public provident fund).
Now without going here and there, I have covered some of the most enquired questions regarding PPF.
1. What is PPF and how it works?
Public provident fund is a popular investment scheme mandated by the government, with low-risk appetite and comparatively high returns. It is a long term investment scheme where your money is locked for certain fixed years. Since PPF is not market-linked, therefore it is safe to invest your hard-earned money in PPF, it provides guaranteed returns after the completion of your locked-in duration.
2. Can anyone open PPF?
Any Indian citizen living in the country is allowed to open the PPF account in self-name.
3. What is the PPF amount?
One needs to invest a minimum of ₹500 and a maximum of ₹1.5 lakhs in a year in the PPF account. It can be paid in installments ( maximum 12 installments allowed annually) or it can be paid in lump sum too.
4. How much interest rate can I get on my PPF account?
OR
Which bank gives the highest interest rates in PPF?
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What is the rate of return in PPF?
The interest in PPF is calculated by the Central Government of India. It provides higher interest compared to the accounts maintained by commercial banks in the country. Interest rates keep on changing, however, the current rate is 7.1% and is subject to quarterly updates at the discretion of the government. Apart from post offices, below is the list of various banks offering PPF facility:
Allahabad Bank (online facility available)
Axis Bank (online facility available)
Bank of India (online facility available)
Canara Bank (online facility available)
Central Bank of India (online facility available)
HDFC Bank (online facility available)
ICICI Bank (online facility available)
IDBI (online facility available)
Punjab National Bank (online facility available)
State Bank of India (online facility available)
5. What is the minimum lock-in period for the PPF account?
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Can I withdraw PPF after 5 years?
Once you invest in PPF, your money gets locked in for 15 years and you cannot withdraw your complete money before that. After locked in period is completed, you can either withdraw your money or if you want, you can extend it in blocks of 5 years.
That means if you extend it for 5 more years, your money gets locked again for the next 5 years.
6. How to open a PPF account?
PPF account can be opened both offline and online. You can either choose any bank or post office to open your account. The interest rate and rules are the same everywhere.
Documents required
Identity proof such as Aadhaar, Voter ID, Driver’s License, etc.