PPF Account Inactive: Public Provident Fund (PPF) is a long-term investment option in which the risk is low and the confidence is high. The maturity of PPF is 15 years. Being a central government scheme, it gives guaranteed returns.
New Delhi: PPF Account Inactive: Public Provident Fund (PPF) is a long-term investment option in which the risk is low and the confidence is high. The maturity of PPF is 15 years. Being a central government scheme, it gives guaranteed returns. Which is more than the return on other low risk investments.
That’s why PPF account can be closed
If you also invest in PPF, then you should take some precautions, otherwise your PPF account may also get closed. To keep the PPF account operational, you have to deposit at least Rs 500 in a financial year. If you miss the deposit, your account becomes inactive. The government fixes the rate of interest on PPF at the beginning of every quarter. Right now this rate is 7.10 percent. Interest is paid on 31st March of every year.
How to start Inactive PPF Account
If you put money in PPF account, then you should know that you can invest a maximum of Rs 1.5 lakh in a financial year. Now if you want your PPF account to be active all the time, then you have to deposit Rs 500 every financial year. However, even if the PPF account has become inactive, it can be restarted.
For this, the account holder will have to submit an application to the bank or post office branch where he has opened the account. Application can be given at any time during 15 years of account opening. After submitting the application, your bank or post office will check to see if 15 years have passed. Once the verification is correct, your PPF account will be restarted. However, if the period of 15 years is over, the account cannot be revived.
Penalty will also have to be paid
If your PPF account has become inactive, then you will have to deposit a minimum of Rs 500 for every financial year, along with a penalty of Rs 50 per financial year. It can be deposited through cheque, this check will have to be deposited in the branch of the bank.
PPF has a maturity period of 15 years, but an account holder can close it before maturity under certain circumstances. Let us know what are the circumstances when this can happen.
PPF account can be closed by maturity
1. If the account holder, his wife or child has any life-threatening illness, then the PPF account can be closed prematurely and the entire amount can be withdrawn
2. If the account holder wants money for higher studies, then the PPF account can be closed is
3. If the account holder has become an NRI can get off the PPF account in such cases
4k PPF account can be closed after completion of 5 years of opening. On doing so 1% interest will be deducted from the date of account opening/extension date to the date of closure of the account.
5. If the account holder dies, then the family members can get the account closed. The nominee or legal heir cannot continue with the PPF account.
6.If the account holder dies before maturity, then the nominee can withdraw the entire amount from the PPF account. The nominee can withdraw the entire amount even if the PPF account has not been opened for 5 years.