Public Provident Fund
Public Provident Fund or PPF is a 15-year deposit scheme of Govt of India, which can be extended indefinitely in the block of 5 years. The minimum investment in PPF account is Rs 500 and maximum is Rs 1.5 lakh per annum. Partial withdrawals are allowed after 5 years.
The principal invested in the PPF qualifies for deduction under Section 80C of the Income Tax Act and the interest earned is also tax exempt.
Public can open PPF account in post offices or select bank branches. Govt. of India determines interest rate for PPF every quarter and present interest rate is @7,9 % which is higher than bank deposit interest rates. Added with the tax exemption on interest PPF becomes an attractive investment option.PPF is risk free investment and is meant for very conservative investors and returns are guaranteed
Eligibility; Only Indian residents can open PPF accounts. NRIs are not eligible to invest in PPF. An individual can open a PPF account in child’s name in the capacity of guardian of the minor. But a PPF account cannot be opened in joint names.
Public provident Fund accounts can be opened at Post offices and select Bank branches.You can transfer your account from one branch to another or from one bank to another and from a post office to a bank and vice versa without any additional charge.
Nomination: While you can’t have a joint account, you can nominate a person of your choice by filling up the ‘Form E’