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at the credit at the end of the fourth preceding year or the end of the preceding year, whichever is lower, can be withdrawn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