If you are thinking of long term investing then Public Provident Fund (PPF) is a good option. Under this scheme, interest is currently being paid at 7.1% per annum, which is much higher than bank fixed deposits. PPF gives you the benefit of tax exemption as well as many other benefits. If you have invested in PPF and your account is closed due to any reason, do not worry. You can easily resume your locked PPF account again.
This is how you can revive your PPF
If your PPF account becomes inactive, then to get it revived, you will have to submit a written application to the bank or post office where it is open. After this you have to give an application to the bank or post office to get your account revived. For this, you will also have to pay a penalty of Rs 50 with a minimum annual contribution of Rs 500.
How does the account become interactive
You have to invest a minimum of 500 rupees every year in a PPF account. At the same time, the maximum investment in this financial year can be 1.5 lakh rupees. If you miss a deposit of 500 rupees in a financial year, then your PPF account is deactivated.
Once the PPF account becomes inactive, you cannot close it before 15 years. Let me tell you that there is no facility to take a loan on an activated account. In such a case, if you have missed contributing to the account in any year, then revive it, after that it will become active again.
This is how you can revive your PPF
If your PPF account becomes inactive then you will have to go to your nearest bank branch or post office to get it revived. After this you have to give an application to the bank or post office to get your account revived. For this, you will also have to pay a penalty of Rs 50 with a minimum annual contribution of Rs 500.
Can open account in post office or bank
The PPF account can be opened in a post office or bank by someone else in his own name and on behalf of a minor. The minimum amount required to open a PPF account is Rs 500.
You get the benefit of tax exemption on this
PPF falls under the category of EEE. That is, you get the benefit of tax rebate on the entire investment made in the scheme. Also, there is no tax to be paid on the entire amount of interest and investment from the investment in this scheme. The rate of interest on PPF investment varies every three months.
PPF account cannot be seized
PPF account cannot be seized at the time of debt or other liability by any court or order.
(With inputs from bhaskar.com)
Ms Kalinga