How to Open PPF Account Eligibility Interest rates Return tax Benefits etc

 

Eligibility

1. There is no upper age limit and minor can open it.
2. Any resident of India.
3. NRI can operate but not contribute when abroad.

 

Features

1. Open in any bank
2. Flexible payment 500-1.5lakhs In a 1 year.
3. EEE Status Fully Tax-Free
4. 15 Years tenure Lock-in period
5. After 7 years of Premature withdrawal available up to 50%
6. Interest rate* as of Now 8% (quarterly changes) better than FD.
7. Interest calculated on Monthly basis (from the 5th-30th month)
8. Deductible under section 80C 1.5 Lakh.
9. Risk-Free Investment
10. Loan Against PPF Available between the 3rd to the 6th financial year (25% balance of previous year)
11. Transfer PPF balance to any bank

 

PPF Intrest rates

 

Financial Year	PPF Interest Rate History (in % p.a)
1 January 2024 – 30 March 2024	7.10%
1 October 2023 – 31 December 2023	7.10%
1 July 2023 – 30 September 2023	7.10%
1 April 2023 – 30 June 2023	7.10%
1 January 2023 – 30 March 2023	7.10%
1 October 2022 – 31 December 2022	7.10%
1 July 2022 – 30 September 2022	7.10%
1 April 2022 – 30 June 2022	7.10%
1 January 2022 – 31 March 2022	7.10%
1 October 2021 – 31 December 2021	7.10%
1 July 2021- 30 September 2021	7.10%
1 April 2021 – July 2021	7.10%
1 January 2021 – 31 March 2021	7.10%
1 October 2020 – 31 December 2020	7.10%
1 July 2020 – 30 September 2020	7.10%
1 April 2020 – 30 June 2020	7.10%
1 January 2020 – 31 March 2020	7.90%
1 October 2019 – 31 December 2019	7.90%
1 July 2019 – 30 September 2019	7.90%
1 April 2019 – 30 June 2019	8.00%
1 January 2019 – 31 March 2019	8.00%
1 October 2018 – 31 December 2018	8.00%
1 July 2018 – 30 September 2018	7.60%
1 April 2018 – 30 June 2018	7.60%
1 January 2018 – 31 March 2018	7.60%
1 October 2017 – 26 December 2017	7.80%
1 July 2017 – 30 September 2017	7.80%
1 April 2017 – 30 June 2017	7.90%
1 January 2017 – 31 March 2017	8.00%
1 October 2016 – 31 December 2016	8.00%
1 July 2016 – 30 September 2016	8.10%
1 April 2016 – 30 June 2016	8.10%

 

How to open PPF Account Offline / Online?

offline:

1. Visit the Nearest Bank or Post Office. (SBI, PNB, India Post, HDFC, ICICI etc)
2. Submit Documents PPF Application Form (FORM -A)
3. PAN Card and ID &
4. Address Proof.

Online

Some banks offer like ICICI. If you are logged with your Netbanking.

There is a Menu to Open PPF Account. Hence Your KYC already with them So you can Open Instantly.

CLosing

Premature Closing in below conditions

• after 5 years.
• serious illness of family,
• higher education for the account holder or minor account
• 1% interest rate deducted as a Penalty

 

How Revive PPF Account?

1. If you stop paying the PPF Then your will PPF will be Inactive.
2. you can reactivate it By paying a Penalty Fee 50 Rupees and Minimum Contribution 500 INR for Every inactive year.

 

Calculating PPF Returns

Monthly investment	Interest rate	tenure	Amount invested	Interest earned	Total maturity
1000	8%	15	180,000	171893	35,1893
2000	8%	15	360,000	343,783	70,3783
3000	8%	15	540,000	515,676	1,055,676
4000	8%	15	720,000	687,565	14,07,565
5000	8%	15	900,000	859,454	17,59,454
10000	8%	15	1,800,000	1,718,914	35,18,914
12500	8%	15	2,250,000	2,148,645	43,98,645

 

TIP:

1. Investing HIgher Amount (up to 1.5 lakh) in Early Years Makes Lot of Profit because of Compound Interest.

2. You Must make Savings as a passion for the best investment for future

3. Divide interest rate with 72 to know when your amount will be double. (72/8=9 so your invested money at lumpsum doubled in 9 years at 8% interest rate)