Best investments options in India, here are the benefits of public provident fund account details under post office saving schemes that you can read on investing check
- Deposits can be made in lump-sum or in 12 installments.
- A joint account cannot be opened.
- The account can be opened by cash/ Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be the date of opening of the account.
- Nomination facility is available at the time of opening and also after the opening of the account. The account can be transferred from one post office to another.
- The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
- Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
- Maturity value can be retained without extension and without further deposits also.
- Premature closure is not allowed before 15 years.
- Deposits qualify for deduction from income under Sec. 80C of IT Act.
- Interest is completely tax-free.
- Withdrawal is permissible every year from a 7th financial year from the year of opening account.
- Loan facility available from 3rd financial year.
- No attachment under court decree order.
- The PPF account can be opened in a Post Office which is Double handed and above.
From 1.04.2017, interest rates are as follows:- 7.9% per annum (compounded yearly).
|Type of Account||Minimum Amount for Opening||Minimum Deposit||Maximum Deposit|
|Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)||INR 100/-||INR. 500/- in a financial year||INR. 1,50,000/- in a financial year|