Post Office PPF Account: You can start investing in the Public Provident Fund Scheme at the post office with just 500 rupees. Yes, keep in mind that you cannot invest more than Rs 1.50 lakh in a financial year.
Post Office PPF Account:
Post office has many small savings schemes in which you can invest money for better returns and safe investment according to your need. Among these, a special scheme is Public Provident Fund i.e. PPF. Investing in PPF is very easy. Let me tell you, the government withdrew its decision on the very next day after the announcement of the recent cut on the interest rate on small savings schemes. The PPF scheme of the post office is invested for a long time and the lump sum received from it helps you.
Interest rate on investment in PPF
According to the information given on the official website of the post office, if you invest in PPF now, you get an interest of 7.1 percent per annum. This interest rate is applicable from 1 April 2020. This scheme is invested for 15 years.
How much can you invest
You can start investing in this public provident fund scheme at the post office with just 500 rupees. Yes, keep in mind that you cannot invest more than Rs 1.50 lakh in a financial year. The PPF account is opened for 15 years. Although there are options to extend it even after maturity.
Who can open PPF account
If you are an Indian citizen, you can open a PPF account in the post office. In this, any single person can open their account. Keep in mind that only one PPF account can be opened in the post office or bank in the entire country. You can deposit money in multiple of 50 in the account, which can be up to Rs 1.50 lakh.
Benefit of tax exemption too
The amount you put in PPF comes under the tax exemption under Section 80C of Income Tax. Keep in mind that if you do not deposit a minimum of 500 rupees in a PPF account in a financial year, then your account becomes disconnected. In such a situation, you do not get the facility to withdraw loans or cash. However, before maturity time, by depositing the minimum fee of Rs 500 and Rs 50, you can revive it.
When will I be able to withdraw cash
Know here that you can withdraw money from this account only once for the fifth year. Withdrawal amount can be up to 50 percent of the deposit amount. If you want to close PPF account in the post office, then it will be possible only after the completion of five years of opening the account.
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