Essential Insights into PPF Accounts Every Investor Should Know
RIVANSHI RAKHRAI
The Public Provident Fund (PPF) is categorized as a fixed-income financial instrument
Investors have the flexibility to invest in their PPF account continuously for up to 15 consecutive years
If an investor doesn't require the funds after the initial 15 years, they can extend the tenure of the PPF account as per their needs
The investment range in PPF accounts is broad, starting from as low as Rs 500 per year to a maximum of Rs 1.5 lakh per year
PPF stands out as a tax-saving scheme with its Exempt-Exempt-Exempt (EEE) feature, ensuring complete tax-free savings
A PPF account can be opened by a single adult who is a resident Indian, and guardians can invest on behalf of minors or individuals of unsound mind
The interest rate on PPF is subject to quarterly reviews, and the current rate is 7.1 percent
Premature withdrawals are allowed, with one withdrawal permitted during a financial year after completing five years, excluding the year of account opening
Only 50 percent of the balance at the credit at the end of the fourth preceding year or the end of the preceding year, whichever is lower, can be withdrawn
After completing 15 years, a PPF subscriber can receive the maturity payment by submitting an account closure form along with a passbook at the concerned Post Office