PPF - PUBLIC PROVIDENT FUND

Individuals can open a PPF Account for themselves or on behalf of a minor or someone of unsound mind for whom they are the guardian. Each person can only have one PPF Account. The scheme does not allow the opening of Joint Accounts.

A minimum deposit of Rs 500 and a maximum of Rs 1,50,000 can be made in a financial year. Deposits can be made as a lump sum or in multiple instalments throughout the year, offering flexibility in managing contributions.

The PPF Account offers an attractive interest rate, which is compounded annually. The rate is set by the government and is higher than regular Savings Accounts, promoting growth over time.

Contributions to a PPF Account are eligible for Tax deductions under Section 80C of the Income Tax Act, up to a limit of Rs 1.5 lakh per year. The interest earned on the PPF Account, and the maturity amount are exempt from Tax, making it a Tax-efficient investment option.

The Account has a lock-in period of 15 years, promoting disciplined long-term savings. Partial withdrawals are allowed after the completion of five full financial years from the date of opening of the PPF Account, providing some liquidity in times of financial need.