Thread by @Finology_Quest

8 important things about PPF 💰

• Min Max Deposit
• Acc opening procedure
• Maturity Period
• Interest rate
• Tax Benefits
• Withdrawal
• Tenure
• Lapse of PPF acc

Let's find out ⤵️

-- A Thread 🧵🪡--

#RupeeVsDollar #investing

PPF is one of the most popular investment cum saving schemes opted in India. It is a type of provident fund which is availed by self-employed individuals. PPF is a saving fund with many tax-saving benefits along with many promising returns.

When a PPF scheme is opened, the money gets deposited into the account every month & interest is compounding. This account can be ideal for people who have a low-risk appetite.

▣ Account opening procedure

PPF account can be opened in any Bank or the Post Office whomsoever you find suitable.

Document required📄:

• ID proof(Voter ID/Pan Card/Aadhar Card)
• Address proof
• Passport size photo
• Pay-in-Slip
• Nomination form

▣ Minimum Deposit amount is Rs 500 & maximum it can go up to Rs 1,50,000

▣ If the account holder fails to deposit:

If you miss paying the minimum annual deposit of Rs 500 altogether, it will lead to deactivation of the account. However, u can reactivate it by paying a penalty of Rs 50 plus Rs 500 for each year u have missed the min PPF payment amt

▣ Tenure

The tenure of the PPF account will be 15 years, after that it will get mature but you can extend it in blocks of 5 years as per your wish

▣ Withdrawals

PPF account holder is eligible for withdrawals before the maturity date. The withdrawal is possible only after 5 years of opening an account. For example, if the account is opened in January 2020, then the withdrawal can be done in the financial year 2025-26.

However, the withdrawal is limited to up to 50% of the balance at the end of the fourth financial year.

▣ Premature withdrawal

- Account holder/spouse/children are facing life-threatening/serious diseases.
- Children’s or account holder’s higher education
- Change in resident status of the account holder

The account can only be closed once the 5 years are completed. However, a penalty is levied by reducing the 1% interest applicable for the period.

▣ Interest

Current Interest rate of PPF is 7.1%

Every year interest rate is set by the Finance Ministry which is paid on the 31st of March & the calculation is based on the lowest balance between the close of the 5th day & the last day of every month.

▣ Tax benefits

PPF scheme falls under the EEE category in which

- All the deposits made to PPF account - Exempt under section 80C up to 1.5 lac in a financial year
- Interest received is tax exempt
- Maturity amount is also tax exempt

• Minimum Deposit - Rs.500
• Maximum Deposit - Rs.1.5 lakh
• Maturity Period - 15 yrs
• Int Rate - 7.1%
• Tax Benefits - EEE benefit
• Premature Withdrawal - in certain cases

Hit the Retweet button🔁 if you liked the tweet & share it with your friends and family.