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benefit of ppf scheme in post office
1)Public Provident Fund (PPF) 

Public provident fund is a popular investment scheme among investors, courtesy of its many investor friendly facilities and related benefits. It is a popular long-term investment plan among individuals who want to earn high but steady returns. The main goal of PPF account holders is proper protection of the principal amount.

2) Why open a PPF account?

A public provident fund scheme is ideal for low risk individuals. Since the scheme is mandated by the government, it has a backup with guaranteed returns to protect the financial needs of the public in India. Also, funds invested in PPF account are not market related.

Investors can also make public provident fund arrangements to diversify their financial and investment portfolios. In times of declining business cycles, PPF accounts can provide stable returns on annual investment.

3) Salient Features of PPF Account.

1)Minimum amount for open PPF Account and Maximum Balance 

A person can open an account with INR 500 / – and deposit INR 500 / – and a minimum of INR 1,50,000 / – in a financial year (including deposits in a minor account opened by the parent).

2)If PPF Account Holder fails to deposit the minimum amount.

Any account in which the account holder deposits five hundred rupees in the initial year, fails to deposit the minimum amount in subsequent years, will be considered closed and that account can be revived during its maturity period on payment of that fee. is. Fifty rupees with a minimum deposit outstanding of five hundred rupees for each year of default

A joint account cannot be opened and only one account can be opened by a citizen in India.

The account can be opened in the case of cash / check and check from the date of receipt of the check in Govt. Account opening date will be.

3 Nomination and Account Transfer Facility for PPF Account.

Nomination facility is available after the account is opened and also at the time of account opening. Account can be transferred from one post office to another

The customer can open another account in the name of minors but is subject to a maximum investment limit by adding balances to all accounts.

4)Maturity period of PPF Account.

The maturity period is 15 years but it can be extended within one year of maturity and up to 5 years

The maturity value can be kept without expansion and without further deposit

5)Premature Closure of PPF Account allowed subject to following conditions.

Premature closure may be allowed after 5 years from the end of the year in which the account was opened subject to the following conditions. 1% interest will be deducted from the date of account opening.

  • In case of threat to the life of the account holder, spouse or dependent children.
  • In the case of higher education of account holder or dependent children.
  • In case of change of resident status of account holder

6)Tax Benefits.

Deposits qualify for a deduction from income under securities. 80C of ITC Act Interest is completely tax-free

7)Mode of Deposit in PPF Account.

The facility of online deposit is available through intra operational net banking / mobile banking.

Online deposit facility is available through IPPB saving account.
No attachment under court’s order

8)Where can you open PPF Account?

PPF account can be opened in all departing mental post offices

9)Loan against investment.

The loan can be taken after the expiry of one year from the end of the year in which the initial membership was made, but before the end of the five years from the end of the year in which the initial membership was made.


Withdrawals can be made after the expiry of five years from the end of the year in which the account was opened.

4) Interest on a PPF Account 

The interest payable on Public Provident fund scheme is determined by the Central Government of India, Interest rates currently payable on such accounts stands at 7.1% per annum (Compounded Yearly) from 01/04/2020.

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