Flexibility - The scheme offers flexibility in terms of opening an account either for an individual or on behalf of a minor child by a natural/legal guardian. The account can be opened at any authorized branch of the bank, making it easy for people to access.
Tax Savings - Deposits made into the account are eligible for tax exemptions under section 80C of the Income Tax Act. This provides a significant tax-saving opportunity for individuals.
Long-term Investment - The scheme has a minimum investment period of 15 years, making it an ideal long-term investment option. Additionally, the period can be extended in blocks of 5 years, providing further flexibility.
Loan and Withdrawal Options - The scheme allows for partial withdrawals after 5 years and complete closure under specific circumstances like medical emergencies or higher education of a minor child. Additionally, subscribers can avail themselves of loans of up to 25% of their credit balance after one year of the account's opening.
Frequently Asked Questions (FAQs)
What is the eligibility for opening a PPF account?
The scheme is open to individuals and accounts can also be opened on behalf of a minor child as a natural/legal guardian. Only one account can be opened in one name.
What is the minimum and maximum subscription amount for a PPF account?
The minimum subscription amount is Rs. 500/-, and the maximum subscription amount is Rs. 150000/- in a financial year.
What is the period of a PPF account?
The minimum period of a PPF account is 15 years and can be extended in a block of 5 years.
What is the rate of interest for a PPF account?
The rate of interest for a PPF account is as per Govt. notification from time to time on a quarterly basis.
Can partial withdrawals or loans be availed from a PPF account?
Partial withdrawals are allowed anytime after the expiry of 5 years from the end of the year in which initial subscription was made. Loans can be availed anytime after the expiry of one year from the end of the year in which initial subscription was made but before the expiry of 5 years from the end of the year in which initial subscription was made. The loan amount can be up to 25% of the credit balance at the end of the second year immediately preceding the year in which the loan is applied.