New Delhi: Nowadays, it is important to invest the money in some savings schemes to maximise the profit instead of just keeping it in the bank. When it comes to savings schemes, the PPF is one of the most reliable and sought-after. The full form of PPF is the Public Provident Fund and it is a popular investment scheme due to its multiple investor-friendly features and associated benefits.
PPF is a long-term investment scheme and is beneficial for those investors who are looking to earn high but stable returns. Those who open a PPF account do so not only to get several benefits but also to keep the principal amount safe. After a PPF account is opened, money is deposited in it every month and interest is compounded.
PPF interest rate, tenor
Notably, the PPF scheme is backed by the government and hence is beneficial for those people who want to take minimal risk while investing. Since the government backs the scheme, PPF ensures guaranteed returns to protect the financial needs of the investors. Also, funds that are invested in the PPF account are not linked to the market.
The Ministry of Finance determines the interest rate of the PPF and it changes every three months. At present, the interest rate of the PPF is 7.1 per cent from October to December this year.
The maturity period of the invested amount in PPF is 15 years but the same can be extended within one year of maturity for a further 5 years and so on. It must be kept in mind that the premature closure of the account is not allowed before 15 years.
Maximum, minimum investment amount in PPF?
The minimum deposit one can make in the PPF account is Rs 500 and the maximum deposit one can make is Rs 1,50,000 in a financial year. It must be noted that a loan facility becomes available from the third financial year upto the sixth financial year. From the seventh financial year, one can withdraw every year.
How to open a PPF account?
Any Indian citizen who lives in the country can open a PPF account in his or her name. Minors can also have a PPF account provided their parents operate it. Documents like ID proof, address proof and passport-size photographs are needed to open the account.
Online
- To open a PPF account online, one has to go to the online portal of the respective bank.
- There, go to the PPF section and click on the option of opening a new account.
- After filling in the details and uploading the documents, a minimum amount of Rs 500 must be deposited.
One can also open a PPF account by going to the bank branch or Post Office.
