- By Aditya Pratap Singh
- Wed, 10 Jan 2024 09:16 PM (IST)
- Source:JND
PPF Account: The Public Provident Fund (PPF) is one of the highly preferred tax saving cum investment choices for citizens looking to save taxes. The benefits of having an investment in PPF are not limited to tax saving only, its popularity can be attributed to various reasons.
Tax Saving Benefits In PPF
Investors investing in PPF enjoy the exempt-exempt-exempt (EEE) benefits, which means that whole investments, all the earnings on it (Interest Rates), and maturity money remain entirely exempt from taxes. The EEE features make PPF stand out from other tax-saving schemes. Tax-saving benefits can be claimed under the Income Tax Act 80c.
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Risk-free guaranteed returns
Public Provident Fund is a government-backed small saving scheme, which provides stable and attractive interest rates. Currently, PPF investments attract a 7.1% per cent interest rate as of January 2024. You might think, it may not offer the highest returns available, but it delivers stable returns. PPF is one of the best investment schemes for long-term financial objectives.
What is the PPF Lock-in period?
The investment in PPF has a 15-year lock-in period, which promotes disciplined savings for long-term financial goals such as retirement.
Investment limit in PPF Account
The investment can be initiated with a minimum investment of Rs. 500 and a maximum of Rs. 1.5 lakh can be deposited in a PPF account per year.
Partially Withdrawl in PPF
Investors can make partial withdrawals after 7th year. In difficult times a loan can be obtained against the balance after completion of 3 years of investment. The loans will be a collateral loan.
How to open a PPF account?
The investment in PPf can be started both online and offline depending on the customer's convenience.
Steps to open PPF account Online
To initiate the contribution in the PPF account online, you should have a savings account with a participating bank or post office. You should have activated Internet banking or mobile banking services.
- Log in to Internet banking or mobile banking
- Find the “Open a PPF Account" option and click on it.
- Next, choose a “Self-Account" option if you are looking to open an account for yourself. Otherwise, select the ‘Minor Account’ option if you plan to open the account on behalf of a minor.
- Fill all the mandatory details in the application form.
- Mention the total amount you plan to deposit in the account for each financial year.
- choose the payment cycles and payment methods
- Next, apply. You will get an OTP to your registered mobile number
- Next, validate your identity with Otp
- You have opened your PPF account successfully
How to open a PPF account Offline
PPF account can be open the PPF account through offline mode as well,
- Fill PPF application form by providing the all information.
- Arrange all the necessary documents.
- Visit the bank or post office. make sure you have a savings account with the bank or Post Office branch for a seamless PPF account process.
- Present the required documents to the bank
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