You Should Know These Four Important Things If You Have PPF Account, Otherwise…

Government has not made any changes in interest rates in the third quarter (October-December) on Public Provident Fund (PPF). The interest rate currently remains at 7.9 percent. Let us tell you that PPF is a good and better option for long investment.

The PPF scheme is run by the government. Therefore, investing in it is considered safe. In this scheme you also get the benefit of tax exemption. Under Section 80C of the Income Tax Act, you get the benefit of tax exemption on contributions up to Rs 1.5 lakh in a year. Apart from this, income from maturity and interest is also tax free. We are going to tell you 4 important things related to PPF accounts that you need to know-

Who can open PPF account

  • Anyone living in India can open PPF account.
  • Any parent can open this account even in the name of their minor child.
  • Once the child turns 18, a form will have to be filled to change the status.
  • PPF accounts cannot be opened on joint account.

Maturity date

Any PPF account can be extended even after 15 years of maturity without any contribution. Explain that the PPF keeps paying interest till the account is closed. If the account holder wants to continue it even after 15 years, for this, filling the form ‘H’ will have to be submitted within one year from the date of maturity.

Calculation of interest

According to PPF rules, investors have to deposit their installments on or before the fifth date of every month because the interest in this account is calculated on the minimum balance between the fifth and last date. Therefore, to get maximum interest, the account holder should deposit his contribution or lump sum before the 5th of every month.

Premature withdrawal and loan

Withdrawal of 50 per cent can be done in PPF accounts from 7th financial year. Explain that even partial withdrawals in PPF accounts are tax free. 50 per cent withdrawal can be done even if the PPF accounts are extended beyond 15 years. At the same time, the loan can be taken after the end of one year from the end of the year in which the initial membership was engaged but before the end of the five years from the end of the year in which the initial membership was taken.


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  1. AKASH says

    Wrong information delivered.i. e. Interest rate on PPF is 7.1 only instead 7.9 as you reflect on news.

  2. Kiran says

    Where are you man?now current year ppf intrest rate is 7.1%.but in your article is remain 7.9%.pls don’t mislead..pls . sorry if I m wrong

  3. Sagar says

    I have a doubt, deposit of every year has 15 years fixed term or the 15 year term is from the first deposit into the account?

  4. Shivam says

    Please check the interest rate again. It’s currently 7.1 not 7.9

  5. P. Shyam Sunder says

    Extension of PPF account after 15 years can be done in block of 5 years either by choosing to retain the balances at the end of 15years or by agreeing to further contribute in the account.
    Partial withdrawal, however, from PPF after extension period is 60% of the balance at the commencement of extension of a block.
    In the article it gives impression that only 50% withdrawal is allowed, which is erroneous.

  6. Ashwin Bhatia says

    Last week I had been to the bank for loan on ppf which is 20 yrs old and the branch manager refuses he says you withdraw the amount loan cannot be given,dear sir I wish to have your able guidance on the above mentioned querry

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