How to Open PPF Account Eligibility Interest rates Return tax Benefits etc

 

Eligibility

1. There is no upper age limit and minor can open it.
2. Any resident of India.
3. NRI can operate but not contribute when abroad.

 

Features

1. Open in any bank
2. Flexible payment 500-1.5lakhs In a 1 year.
3. EEE Status Fully Tax-Free
4. 15 Years tenure Lock-in period
5. After 7 years of Premature withdrawal available up to 50%
6. Interest rate* as of Now 8% (quarterly changes) better than FD.
7. Interest calculated on Monthly basis (from the 5th-30th month)
8. Deductible under section 80C 1.5 Lakh.
9. Risk-Free Investment
10. Loan Against PPF Available between the 3rd to the 6th financial year (25% balance of previous year)
11. Transfer PPF balance to any bank

 

How to open PPF Account Offline / Online?

offline:

1. Visit the Nearest Bank or Post Office. (SBI, PNB, India Post, HDFC, ICICI etc)
2. Submit Documents PPF Application Form (FORM -A)
3. PAN Card and ID &
4. 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?

1. If you stop paying the PPF Then your will PPF will be Inactive.
2. you can reactivate it By paying a Penalty Fee 50 Rupees and Minimum Contribution 500 INR for Every inactive year.

 

PPF Intrest rates

 

 

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)