INSUBCONTINENT EXCLUSIVE:
A Public Provident Fund (PPF) account matures in 15 years.India Post, the postal network of the country, offers several savings schemes to
mobilize small investments
One such savings scheme offered by India Post is the Public Provident Fund (PPF) account
PPF offers an investment avenue with decent returns coupled with income tax benefits
For the quarter ending December, PPF accounts fetch an interest rate of 8 per cent per annum
Interests on deposits are compounded on an annual basis, which means that it is added to the principal amount every year, noted India Post
exempt, exempt, exempt (EEE) category of tax status
Section 80C of Income Tax Act.2
PPF accounts can be opened by cash/cheque and in case of cheque, the date of realization of cheque in government account is the date of
opening of account, said India Post.3
PPF accounts can be opened by an individual with Rs 100 but he/she must deposit a minimum of Rs 500 in a financial year and maximum of Rs
The subscriber should not deposit more than Rs 1,50,000 per annum as the excess amount neither earns any interest nor is eligible for rebate
under Income Tax Act, mentioned India Post.4
PPF accounts mature in 15 years
Thereafter, on application by the subscriber, it can be extended for one or more blocks of five years each.7
In PPF accounts, premature closure is not allowed before 15 years.8
A nomination facility is available at the time of opening and also after opening of the account
The account can be transferred from one post office to another.9
A subscriber can open another account in the name of a minor subject to the maximum investment limit by adding balance in all
