PPF Latest Update: Public Provident Fund ie PPF is a great option for safe investment. You can start with low investment by opening a PPF account in a bank or post office. There is a provision to deposit a minimum of Rs 500 annually and a maximum of Rs 1.5 lakh. At present, the interest rate on PPF is 7.10 percent. The interest rate of PPF is expected to increase in the quarter ending September. In the last few years, the government has changed its rules. Let us know about these changes.
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Money will be deposited only once in a month, investment in PPF account should be done in multiples of Rs 50. This amount should be at least Rs 500 or more annually. You can deposit up to 1.5 lakhs in the PPF account during the entire financial year. Only on this you get the benefit of tax exemption. Apart from this, money can be deposited in PPF account once in a month.
A reduction in the interest rate of the loan can also be taken on the balance present in the PPF account. This interest rate has been reduced from 2 percent to 1 percent in the last days. After paying the principal amount of the loan, you will have to pay the interest in more than two installments. Interest is calculated on the first of every month.
The account will remain active even after maturity
It is not necessary to deposit money in this account after the completion of 15 years. You can withdraw money only once in a financial year by opting to extend the PPF account after maturity.
To open a PPF account, you have to submit Form-1 instead of Form
A. For extension of PPF account after 15 years (with deposits) one year before maturity, one has to apply in Form-4 instead of Form H.
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