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Public Provident Fund: 9 things you should know about PPF account

There are some things related to public provident fund that are less known. You should have complete information about these before opening a PPF account.

Public provident fund: In order to raise money for retirement, most people prefer to invest in Public Provident Fund (PPF). Currently, PPF is getting 7.1% interest.

In the long run, it is a good investment option because its maturity period is 15 years and can be extended. Along with this, there is also a tax exemption under 80C of the Income Tax Act.

Tax free

Income tax deduction benefits on PPF contribution of up to Rs 1.5 lakh per annum. While the amount of interest and maturity received on it is also tax free.

If you make a full or partial withdrawal from PPF, then it is also tax free.

However, there are some things about it that are less known. You should know about them well before opening a PPF account.

Nine important information

1. PPF account can also be opened in the name of joint holders, although PPF account of a minor can be opened only under the guidance of his parents.

2. NRI is not allowed to open PPF account. However, NRIs can continue with their pre-existing PPF accounts. They can continue these accounts till the date of maturity. Also, they are not allowed to deposit money in their existing PPF accounts.

Maximum 12 times

1. A person can contribute a maximum of 12 times in a year and its maximum limit is 1.5 lakh rupees. The annual limit of minimum contribution in this is 500 rupees.

2. If a person wants to continue his PPF account even after 15 years, then he has the option to extend its maturity period in a block of 5 years. You can proceed this any number of times in a block of 5-5 years.

Account transfer

1. People have the facility to transfer their PPF account from bank to post office or post office to bank. Similarly, you can transfer your PPF account from one bank branch to other banks also.

2. Interest on PPF account is calculated according to the minimum balance present on the 5th of every month. To increase the interest, subscribers should deposit money in it before the 5th of every month.

Partial withdrawal

1. Partial withdrawal is allowed in PPF accounts from the seventh financial year. Partial withdrawal from PPF is also tax free. Even if the PPF account is extended beyond 15 years, you can do partial withdrawal from it.

2. No person is allowed to run more than one PPF account at a time. If more than one PPF account is found, then according to PPF regulations your entire fund can be confiscated. If two PPF accounts are found, the other account will be considered invalid.

3. The interest received on PPF is usually revised every quarter by the Central Government.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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