15 year Public Provident Fund Account (PPF )
Interest payable, Rates, Periodicity etc.
8 % per annum (compounded yearly).
Minimum Amount for opening of account and maximum balance that can be retained
Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
Deposits can be made in lump-sum or in 12 installments.
Salient features including Tax Rebate
An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/-
Joint account cannot be opened.
Account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.
Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
Maturity value can be retained without extension and without further deposits also.
Premature closure is not allowed before 15 years.
Deposits qualify for deduction from income under Sec. 80C of IT Act.
Interest is completely tax-free.
Withdrawal is permissible every year from 7th financial year from the year of opening account.
Loan facility available from 3rd financial year.
No attachment under court decree order.
The PPF account can be opened in a Post Office which is Double handed and above.