Public Provident Fund (PPF) Guide: Interest & Extension

What is the interest rate on PPF?

The government reviews and declares the PPF interest rate quarterly. It historically ranges between 7% and 8% per annum, compounded annually.

What is the minimum and maximum deposit in PPF?

The minimum deposit required is ₹500 per financial year. The maximum investment limit is ₹1.5 Lakhs per financial year.

What does EEE tax status mean?

Exempt-Exempt-Exempt. Your deposits qualify for Section 80C tax deduction, the annual interest earned is tax-free, and the final maturity amount is fully tax-free.

Can I close my PPF account before 15 years?

Premature closure is allowed only after 5 years under specific conditions, such as treatment of life-threatening diseases or higher education, with a 1% interest penalty.

How do I extend my PPF account after 15 years?

You can extend your PPF account indefinitely in blocks of 5 years, with or without making fresh deposits, by submitting Form H within a year of maturity.

What is the best date of the month to deposit money in PPF?

Deposit on or before the 5th of the month. Interest is calculated on the lowest balance between the 5th and the end of the month.

Can I take a loan against my PPF account?

Yes, you can take loans against your PPF balance between the 3rd and 6th financial years at an interest rate that is 1% higher than the prevailing PPF rate.

Is PPF balance safe from court attachments?

Yes, under the PPF Act, the balance in a PPF account cannot be attached by any court decree or creditors for the recovery of active debts.

Can I open a joint PPF account?

No, joint PPF accounts are not allowed. You can only open an individual account, though you can add nominees during or after registration.

Where can I open a PPF account?

You can open a PPF account online or offline at any post office branch or authorized nationalized and private commercial banks.

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