You can deposit money in your PPF account in many ways. If you cannot deposit money every month by visiting the bank, post office or that financial company, then you can take the help of online option. This will also save your time and there will be no hassle of commuting.
Public Provident Fund ie PPF account is an investment option. Tax exemption under section 80C is available on investment up to Rs 1.5 lakh annually in this account. There is no tax on interest income also. The amount received on maturity is also not subject to tax. In view of so many tax benefits, people open PPF account in their bank/post office. With the help of this, people add a lot of money. A PPF account can be opened in a post office or bank in his own name and by any other person on behalf of the minor. However, as per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF). Further, a joint account also cannot be opened.
If you are a little careless about depositing money in the PPF account every month, then you will lose it. There is a special reason behind this. It would be better to make arrangements for depositing money in the PPF account on a fixed date every month. You can deposit money in it in many ways. If you cannot deposit money every month by visiting the bank, post office or that financial company, then you can take the help of online option. This will also save your time and there will be no hassle of commuting.
Experts say that depositing money in the PPF account before the 5th of every month will give more benefits. He says that the interest on PPF (Public Provident Fund) deposits is calculated every month. This interest is fixed on the amount deposited between the 5th to the last date of the month. In such a situation, if you deposit money before the 5th, then you will get more interest.
This is an option to deposit money online in the form of Electronic Clearing System (ECS). In this, a fixed amount can be transferred from one bank to another account every month i.e. regularly. For this you have to apply for ECS in the bank. Once the ECS is activated, the money will automatically be transferred from your bank account to the PPF account within the stipulated time.
National Electronic Funds Transfer (NEFT) is an online option to deposit money online. It can be used through net banking facility. To deposit money in PPF through this medium, you need to have your PPF account number and IFSC code of the bank branch in which you have your PPF account. With NEFT you can transfer money in no time.
This facility is easiest if both your bank account and PPF account are in the same bank. In this, you can easily transfer money from your savings account to PPF account. In this you can deposit money every month or daily. Here you have to keep in mind that only up to Rs 1.5 lakh can be deposited in PPF annually. This is a very convenient option.