{"id":6339,"date":"2020-01-15T11:42:46","date_gmt":"2020-01-15T06:12:46","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6339"},"modified":"2020-01-15T14:20:10","modified_gmt":"2020-01-15T08:50:10","slug":"ppf-2","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/ppf-2\/","title":{"rendered":"PPF – A Must Have Investment"},"content":{"rendered":"

PPF (Public Provident Fund)<\/strong> is one of the most popular and probably one of the best investment options in India. And rightly so because of the features, tax benefit and almost risk free returns that it offers. In this post we discuss everything you wanted to know about PPF.<\/p>\n

Who can Open PPF Account?<\/h2>\n
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  1. Any citizen of India irrespective of Income Source can open PPF Account.<\/span><\/li>\n
  2. NRIs cannot open PPF account<\/strong> nor can they extend their existing PPF after maturity. However through a notification in July 2003, they are allowed to continue to make deposit to the existing account they opened before becoming NRIs.<\/span><\/li>\n
  3. HUFs are no longer allowed to open PPF<\/strong> accounts.<\/span><\/li>\n
  4. No joint holding is allowed<\/strong> in PPF. The account can only be opened in single name.<\/span><\/li>\n<\/ol>\n

    Can PPF Account be opened for Minors?<\/h3>\n

    PPF Account can be opened for minors under the guardianship of the parent. Either of the parent (husband or wife) can be the guardian of the child.<\/p>\n

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    Also Read:<\/strong> Download PPF Calculator – With Max Eligible Loans & Withdrawals<\/a><\/p>\n<\/blockquote>\n

    How to open PPF Account?<\/h2>\n

    PPF account can be opened in Post Offices and the following banks:<\/p>\n\n\n\n\n\n\n\n\n\n
    Allahabad Bank<\/td>\nCorporation Bank<\/td>\nSyndicate Bank<\/td>\n<\/tr>\n
    Andhra bank<\/td>\nDena Bank<\/td>\nUCO Bank<\/td>\n<\/tr>\n
    Bank of Baroda<\/td>\nIDBI Bank<\/td>\nUnion Bank of India<\/td>\n<\/tr>\n
    Bank of India<\/td>\nIndian Bank<\/td>\nUnited Bank of India<\/td>\n<\/tr>\n
    Bank of Maharashtra<\/td>\nIndian Overseas Bank<\/td>\nVijaya Bank<\/td>\n<\/tr>\n
    Canara Bank<\/td>\nPunjab National Bank<\/td>\nICICI Bank Ltd<\/td>\n<\/tr>\n
    Central Bank of India<\/td>\nState Bank of India<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    PPF account in most of the banks can now also be operated online.<\/p>\n

    At times banks may not be very keen to open PPF account as they do not get to use the money.<\/strong> The immediately transfer the money to RBI. They only get commission on the amount collected. So banks try to sell you products which are more profitable for them.<\/p>\n

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    Also Read:<\/strong> Best Tax Saving Investments u\/s 80C<\/a><\/p>\n<\/blockquote>\n

    Interest Rate on PPF<\/h2>\n
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    1. The interest rate is marked to the average Government bond yields<\/strong> and is notified at the beginning of every financial year on April 1<\/del>\u00a0would be notified at the beginning of every quarter.<\/a> This change is effective from April 1, 2016. \u00a0The interest rate as of FY 2019-20 (April to June) is 8.0% (The interest rate is fixed 0.25 per cent above the 10-year government bond yield) <\/em>(Click to check latest interest rates on PPF<\/a>)<\/span><\/li>\n
    2. The interest is compounded annually and is credited to the account at the end of financial year.<\/span><\/li>\n
    3. The interest in PPF is calculated on minimum balance between 5th to the last day of the month. So you should make your investment before 5th of the month<\/strong> or it would not get interest for the month.<\/span><\/li>\n<\/ol>\n
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      Also Read:<\/strong>\u00a0Highest Interest Rate on Bank FD\u00a0– compared across 48 banks<\/a><\/p>\n<\/blockquote>\n

      Best Features of PPF<\/h2>\n
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      1. PPF has sovereign guarantee<\/strong> which mean the principal and interest is guaranteed by Government of India. This makes its Credit risk almost zero!<\/strong><\/span><\/li>\n
      2. PPF cannot be attached by courts<\/strong> or government under any circumstances.<\/span><\/li>\n
      3. The tax on PPF is EEE (Exempt- Exempt- Exempt)<\/strong> which means that there is tax benefit when investment is made, there is no tax when the investment earns interest every year and there is also no tax when the investment is withdrawn on maturity.<\/span><\/li>\n
      4. The investment in PPF up to Rs 1,50,000 is exempted from income tax u\/s 80C. [Budget 2014<\/a>]<\/span><\/li>\n<\/ol>\n

        Also Read:<\/strong>\u00a0Best ELSS (Tax Saving Mutual Fund) to Invest in 2019<\/a><\/p><\/blockquote>\n

        Withdrawals from PPF<\/h2>\n

        The withdrawal from PPF depends on the number of years the account has been active:<\/p>\n