Eligibility
- There is no upper age limit and minor can open it.
- Any resident of India.
- NRI can operate but not contribute when abroad.
Features
- Open in any bank
- Flexible payment 500-1.5lakhs In a 1 year.
- EEE Status Fully Tax-Free
- 15 Years tenure Lock-in period
- After 7 years of Premature withdrawal available up to 50%
- Interest rate* as of Now 8% (quarterly changes) better than FD.
- Interest calculated on Monthly basis (from the 5th-30th month)
- Deductible under section 80C 1.5 Lakh.
- Risk-Free Investment
- Loan Against PPF Available between the 3rd to the 6th financial year (25% balance of previous year)
- Transfer PPF balance to any bank
How to open PPF Account Offline / Online?
offline:
- Visit the Nearest Bank or Post Office. (SBI, PNB, India Post, HDFC, ICICI etc)
- Submit Documents PPF Application Form (FORM -A)
- PAN Card and ID &
- Address Proof.
Online
Some banks offer like ICICI. If you are logged with your Netbanking.
There is a Menu to Open PPF Account. Hence Your KYC already with them So you can Open Instantly.
CLosing
Premature Closing in below conditions
- after 5 years.
- serious illness of family,
- higher education for the account holder or minor account
- 1% interest rate deducted as a Penalty
How Revive PPF Account?
- If you stop paying the PPF Then your will PPF will be Inactive.
- you can reactivate it By paying a Penalty Fee 50 Rupees and Minimum Contribution 500 INR for Every inactive year.
PPF Intrest rates
Year wise
Interest rate (Per Annum)
2018-2019
8.0%
2017-2018
7.8%
2016 – 2017
8.0%
2013 – 2016
8.7%
2012 – 2013
8.8%
2011 – 2012
8.6%
2005 – 2011
8.0%
Calculating PPF Returns
Monthly investment
Interest rate
tenure
Amount invested
Interest earned
Total maturity
1000
8%
15
180,000
171893
35,1893
2000
8%
15
360,000
343,783
70,3783
3000
8%
15
540,000
515,676
1,055,676
4000
8%
15
720,000
687,565
14,07,565
5000
8%
15
900,000
859,454
17,59,454
10000
8%
15
1,800,000
1,718,914
35,18,914
12500
8%
15
2,250,000
2,148,645
43,98,645
TIP:
1. Investing HIgher Amount (up to 1.5 lakh) in Early Years Makes Lot of Profit because of Compound Interest.
2. You Must make Savings as a passion for the best investment for future
3. Divide interest rate with 72 to know when your amount will be double. (72/8=9 so your invested money at lumpsum doubled in 9 years at 8% interest rate)
PPF (Public Provident Account) FORMS List
Forms
Nature of the Form
Form A
opening
Form B
making deposits and repaying the loans
Form C
partial withdrawals
Form D
To apply for a loan
Form E
Adding a nominee
Form F
Changing the nomination
Form G
claiming funds by the nominee or the legal heir
Form H
extending the of the PPF 1 to 5 years