5 Rules Of The Public Provident Fund (PPF) Investment. 

The Public Provident Fund (PPF), a government of India operated small savings and investment scheme with relatively high rate of interest.This investment option offers investors a great way to build a long-term corpus by investing small amounts regularly over a initial period of 15 years extendable for span of five years. A PPF account provides a good combination of safety of Capital Invested, returns and tax-saving benefit under EEE system. 

It's very common question comes to mind 

Who can open an account? 

Where to open an account?

How to transfer your account?

What are the benifit of PPF Investment? 

In order to get answer to all this question we sht know some of the PPF account rule. This 5 Rules Of The Public Provident Fund (PPF) Investment you should know before Investing.

(1) PPF Account Rules

PPF Account opening rule include Who can open an PPF investment account, where to open a PPF account and how to transfer your PPG account. 

Eligibility of PPF Account: 

Any Indian citizen can open a PPF account either in his own name or on behalf of a dependant minor. But PPF Account can’t be opened as joint account or in the name of  Hindu Undivided Family (HUF). There is also restrictions that only one account can be opened in favor of an Individual. 

Where to open PPF Account: 

You can open a PPF account at any  post-office or designated bank like the HDFC Bank, State Bank of India and others. PPF account opening can be done both online or offline, but it's mandatory to add PAN Number to the customer profile. 

PPF Account Maturity: 

A PPF investment account normally matures in 15 years, and it can extend in blocks of 5 years each. It must have to extend the tenure within one year of maturity month.

PPF Account transfer:

You can transfer your account from one branch to another branch of same bank or from one bank to another bank and from a post office to a designated bank and vice versa without any charge.

PPF Account Nomination: 

You can nominate a person of your choice by filling up the ‘Form E’ and submitting the same to the office where PPF Account is on operation. You can’t have a joint account with anyone

Important Topic: Atal Pension Yojana (APY) is best investment for defined pension.

(2) PPF Account Deposit Rules:

Next important information we seek regarding, how much one can invest, how many times can you invest in years or month and what is the interest rate applicable and how it's calculated. Here are some PPF Account deposit rules you should know about.

PPF Account Investment Limit:

You can open a PPF account with as little contribution of Rs.100. However, you must deposit a minimum corpus of Rs. 500 in a financial year. A maximum of Rs. 1.5 lacs per financial year. 

(3) PPF Interest & Taxation Rules:

According to Income Tax rule investments up to Rs. 1.5 lacs are tax deductible under section 80C of the Income Tax Act 1961. The returns on your account are also tax-free upto contribution of ₹1,50,000 a year making it one of the most tax-efficient investments options in India.

PPF Account interest rate: 

The government of India declare the interest rate every quarter,At the time of writing, the interest rate is 7.6%. The PPF interest was very high and stable in previous years but recently the government reviews the rate each quarter. In spite of reduction and changed taxation rule the PPF is still treated as most effective and preferred investment by Indian in tax bracket.

(4) PPF Investment Withdrawal Rules:

In every investment we normal think about exit or withdrawal rule. The questions like Can you take a loan? or  can we make a partial withdrawal? Can you close our PPF account prematurely? Comes to our mind. Here are some PPF Account withdrawal rules we should know.

PPF Account Loans: 

We can take a loan on your PPF account between the 3rd and 6th financial year of opening the PPF account. This loan should must be  repaid within thirty six months. The rate of interest on the loan is normally 2% more than the interest payable on the account.

PPF Partial withdrawals:

The partial withdrawals can be done from the 7th financial years. After that we can make partial withdrawals, but we cannot take a loan from that account. 

(5) PPF Account closure Rules: 

PPF Investment Account can closed and make a full withdrawal after the 5th financial year for medical treatment of severe or life-threatening illness conditions for yourself and your dependant family members or for the of higher education.

"The information provided in this article " 5 Rules Of The Public Provident Fund (PPF) Investment" is general in nature and for informational and educational purposes only. It is not a substitute for any specific advice in your own circumstances. You are recommended and advised to obtain specific professional advice from professionals before you take any/refrain from any action or Investment"