PPF Account Limit: Savings are very important in today’s time. In such a situation, if you also want to collect big funds through investment, then investing in Public Provident Fund ie PPF can prove to be a better option for you. But do you know how many PPF accounts an investor can open and what are the rules regarding this. Today we will know about it in detail here.
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Investing in PPF earns interest at the rate of 7.1 percent. Explain that this interest rate available on PPF is likely to cross 8 percent in the July-September quarter. In such a situation, investing in PPF is very beneficial, but before that it is very important to know about the rules related to it.
Who can open PPF account?
Public Provident Fund, the most popular investment scheme of small savings schemes, can be opened by any Indian resident in his own name. At the same time, one of the parents can open a PPF account for a minor son or daughter. In case of death of both parents, grandparents can open PPF account as guardians of grandchildren.
How much can a person open PPF account?
According to PPF rules, a person can open only one PPF account. No person is allowed to open more than one PPF account. However, in some cases it has been seen that investors open PPF accounts in the name of wife and minor child to avail the benefits of PPF.
Know what is PPF account rule
It is worth noting that if the PPF account holder does not deposit a minimum of Rs 500 in his account at the end of the financial year, then there is a provision to impose a fine of Rs 50 per year as a default. At the same time, the investment period of PPF account is fixed at 15 years. Investors can withdraw once every year from the 7th financial year, but this amount cannot exceed 50 percent. Also, the minimum deposit amount for PPF investment is Rs 500 per year and the maximum limit is Rs 1,50,000 per year.
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