PPF Saving Scheme PPF i.e. Public Provident Fund Scheme This is a savings scheme. The PPF account earns an interest rate of 7.1% per annum (compounded annually). Depositors are eligible for deduction under section 80C of the Income Tax Act.
Different people choose their own way of saving according to their own understanding. There are various types of savings schemes in which people invest. One such savings scheme is Public Provident Fund. Public Provident Fund Account (PPF) can be opened in the post office. It earns very good interest.
In such a situation, if you want to open a Public Provident Fund account in the post office, you need to know the detail about it. So let’s know about the PPF scheme of Post Office, who can take advantage of it and what are the terms and conditions.
What is PPF scheme and who can take advantage of it?
PPF i.e. Public Provident Fund Scheme, it is a savings scheme. Public Provident Fund Account can be opened by a single adult (who is an Indian citizen) and a guardian on behalf of a minor/ terminally ill person. Only one account can be opened by a person in a post office or any bank across the country.
How much interest is earned on PPF account?
The PPF account offers an interest rate of 7.1% per annum (compounded annually). Interest is calculated on the lowest balance in the account between the end of the fifth day for the calendar month and the end of the month. Interest is credited to the account at the end of every financial year. The interest earned is tax free under the Income Tax Act.
deposit rules
A minimum deposit of Rs 500 and a maximum of Rs 1,50,000 can be deposited in a financial year. These can be deposited in one lump sum or in instalments. Money can be deposited in any number of installments during the financial year but the amount to be deposited should be in multiples of Rs 50. Depositors are eligible for deduction under section 80C of the Income Tax Act.
At the same time, if the minimum amount of Rs 500 is not deposited in any financial year, then the said PPF account is closed. Loan/withdrawal facility is not available on closed accounts.
