Public Provident Fund Account

Public Provident Fund Account

Public Provident Fund Account

• From 1.4.2014, interest rates are as follows:- 8.70% per annum (compounded yearly).

• Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.

• Deposits can be made in lump-sum or in 12 installments.

• 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 .

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