Post Office Public Provident Fund PPF

Post Office Public Provident Fund – PPF is a long-term savings scheme facilitated by the government of India. PPF is risk-free and secured with a profitable interest rate, tax benefits, and investment scheme. Thus, people who need to make a secured investment can opt for this scheme. The minimum investment can be Rs.500 and maximum Rs. 1.5 Lakhs in a financial year. The deposit amount can be lump-sum or in installments.

PPF Key Features:

1. Tenure:

• The total tenure for PPF is 15 years.
• Thereafter, an extension of 5 Years after completion of 15 years.

2. Interest Rate:

• The government of India fixes the interest rate every quarter.
• Moreover, the present interest rate is 7.1% per year compounded annually.
• Also, at the end of the financial year, the interest gets credited to the account.

3. Deposit Amount:

• Minimum Investment amount is Rs. 500.
• In a financial year, Maximum of Rs 1.5 Lakhs.
• Payment should be a Single Payment or installment such as monthly, quarterly, or annually.

4. Tax Exemption:

• Tax exemption for PPF under section 80C.
• Further, there is a tax exemption for Investment, its interest, and maturity amount. (EEE – Exempt, Exempt, Exempt).

5. Partial Withdrawal:

• After the completion of 5 years, the PPF Account allows Partial Withdrawal for every year.
• Therefore, 50% of the deposit amount can be withdrawn after the 4th preceding financial year.

6. Account Transfer:

• Transfer of PPF account from post office to post office or to bank

7. Loan Facility:

• The loan can be taken from the PPF account within the 3rd to the 6th year of the account opening.
• Also, only 25% of the deposit amount is the loan availability.
• For repayment before 36 months the interest rate is 1%, beyond 36 months then 6 %.

8. Nomination:

• Assign the nominee.
• Moreover, On the death of the account holder, the nominee will get the amount.

9. Closure:

• 15 years is the closure period for the PPF account.
• During the uncertain period such as medical reasons or for higher education, PPF allows account closure after 5 years.
• Reduction of 1% Interest rate on closure.

PPF Eligibility

• Salaried, Self-employed, and Pensioner are eligible for opening the Post office PPF account.
• Individuals above the age of 18 Years can apply for the PPF account.
• However, open Minor Accounts with the help of guardians/parents.
• PPF allows only single account holders; also, No Joint Accounts.
• Moreover, individuals can have only one PPF account.

Documents Required:

• Identity Proof: Aadhar Card, Voter Card, Passport, Driving License.
• Address Proof: Aadhar Card, Electricity bill, Voter Card, Passport, Driving License
• Passport size photograph
• PAN Card
• Nomination Form (Form E)

Post Office Public Provident Fund PPF Application Process

Offline:

• Firstly, Visit your nearest Post Office.
• Then, get the PPF form from the officials.
• Also, fill out the details and submit them with all the required documents.
• Finally, pay the investment amount and start the PPF account.

Online:

• Firstly, visit the Post office‘s e-banking website.
• Login using the credentials.
• Then, under the General Services tab, select the ‘Service Request’.
• Click on ‘New Request’ and select the ‘Open NSC account’.
• Moreover, fill in the Deposit amount and make the payment from the PO savings account.
• Then, verify and check the Terms and Conditions.
• Finally, submit the form and your registered mobile number or email will get the notification for the PPF account.

PPF Benefits:

1. Risk-free deposit: This scheme is highly secured under the guidance of the government of India.
2. Tax exemption: Full tax exemption from deposit till maturity (EEE).
3. High Interest Rate: Obviously, the assured interest rate of 7.1% is provided.
4. Long-Term Deposit: Ideal for raising the funds for the future.
5. Premature withdrawal and Closure.

PPF scheme under the Post Office is a risk-free and secure long-term scheme. Also, this provides financial security, tax exemption, and fixed interest rates for individuals and families.

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