PPF, or Public Provident Fund, is a popular savings scheme in India that offers attractive interest rates and tax benefits. It is a long-term investment option backed by the government, making it a safe and secure choice for individuals looking to build wealth over time.
Individuals can open a PPF account with any authorized bank or post office in India. The minimum contribution amount is Rs. 500, with a maximum yearly deposit limit of Rs. 1.5 lakh. The account has a maturity period of 15 years, and investors have the option to extend it in blocks of 5 years.
- Guaranteed returns: PPF offers fixed and tax-free returns, making it a reliable investment option.- Tax benefits: Contributions made towards PPF are eligible for tax deductions under Section 80C of the Income Tax Act.- Flexible investment options: Investors can choose to deposit a lump sum amount or make monthly contributions towards their PPF account.- Loan facility: After completing 3 years, investors can avail of loans against their PPF balance.
No, individuals are only allowed to open one PPF account in their name. However, they can open separate accounts for minors under their guardianship.
If you fail to contribute to PPF in any given year, your account becomes inactive. You can reactivate it by paying the penalty fee and fulfilling the minimum deposit requirement for that year.
