can be opened in
1. Head Post-Office
3. Any branch of SBI
4. Selected branches of Nationalized bank like Central bank of India etc
- Minimum investment of Rs. 500 in a financial year
- Maximum of Rs. 70,000/- in a financial year
- can be invested in lump sum or in convenient instalments
- you cannot deposit more then 12 times in a year
- 8% p.a credited to the account, once a year, as on 31st March of each year.
- Deposits made before 5th of every month are eligible for interest for that month. Date of deposit is considered for this purpose
- Interest can be changed by the Government of India at any time
Past Interest rate were as under
upto 14.1.2000 - 12%
15.1.2000 to 28.2.2001 - 11%
1.3.2001 to 28.2.2002 - 9.5%
1.3.2002 to 28.2.2003 - 9%
1.3.2003 onwards - 8%
- PPF is 15 year account
- The term of the account can be extended by 5 years at a time by making an application in specified form to the deposit office, within one year
- An account can be extended any number of times
- The entire balance can be withdrawn in full after the expiry of 15 years from the close of the financial year in which the account was opened.
- The depositor can take a loan in the third financial year from the financial year in which the account was opened
- loan can be taken upto 25% of the amount standing at the end of the second preceding financial year
- The loan shall be repayable in 36 instalments and shall bear interest at the rate of 1%. No loan can be obtained after the end of 5th year.
- Depositor is permited to make one withdrawal every financial year.
- withdrawal is permitted from the 7th financial year
- Amount of withdrawal can not exceed 50% of the balance to his credit at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year, whichever is less
- The interest earned on PPF account (including interest during the extension period) is excluded from income tax u/s 10(1).
- The entire deposit in the account is exempt from wealth tax.
- The annual contribution to the account is eligible for deduction u/s 80c
- A PPF account with one deposit office can be transferred to another deposit office
- PPF account is necessarily opened in a single name. Nomination facility is available
- A depositor can nominate more than one person and stipulate the percentage of sharing among nominees