Can we open PPF Account in Two Banks?
The Public Provident Fund account is considered as the most recognized scheme for the purpose of investment in India. Therefore, most of the citizens are eager to get themselves enrolled to the PPF fund saving scheme. However, there are a lot of myths all around regarding the regulations of opening a PPF account.
Despite the popularity of the Public provident Fund (PPF) scheme, the query is that whether a person can operate two accounts under this savings scheme introduced by the government of India or not?
In this article, we will make our readers aware of all the essential facts regarding the Public Provident Fund (PPF) scheme. So, let’s go through the detailed information and clear your doubts about the same.
The eligibility criteria
If a person needs to get registered to the Public Provident Fund account then, the person,
- should be a permanent resident of India
- should be at least 18 years in age (Minors can open this account on their parents and guardians name)
- should have a savings bank account
- should have a valid identity proof
- should have a valid address proof
- PAN card
NOTE: the non-resident Indians are not allowed to open a PPF account. Whereas, if an Indian resident opens a PPF account and attains non-residency after doing so then, he/she can continue with that old account till the time of the maturity of the PPF account and that too on a non-repatriation basis.
Can a person open multiple PPF accounts?
This is a question, which has confused most of the people who think of investing with PPF scheme. Well, the answer for this question is a big ‘No’. In accordance with the rules & regulations of the Public Provident Fund scheme, the government has allowed opening a single account per person. Adding more to this point, if a person wants to invest in PPF for his/her children then, an account could be opened for the child as a minor and can become the guardian of child’s PPF account. But, the till the age of 18 the minor cannot have an individual PPF account on his/her name.
Where to open a PPF account?
A Public Provident Fund account can be easily opened in any of the nationalized banks around the country. This account can also be opened in any of the post offices and in the some selected bank branches.
PPF maturity period:
PPF is a scheme that goes on for 15 years. Therefore, according to the set of rules, the PPF account is considered to be mature after the completion of the duration of 15 years from the time of opening the account. Adding more to this point, if a PPF holder wants to increase the duration of the account after its maturity then, it can be easily extended for the desired number of times. This scheme gets extended in a block of 5 years at once. The most essential fact to be known is that in case a person really needs to go with this sort of scheme extension then, he/she is required to submit form H within the duration of 1 year from the maturity date of the PPF scheme.
Premature PPF withdrawal:
Yes, the candidate is allowed to withdraw cash in PPF after the sixth year of the enrollment in scheme. The 1st cash withdrawal is allowed after the completion of 5 financial years calculating from the end of your subscription year. The withdrawal amount will be restricted to the half of credit amount on the completion of 4th year. Only one withdrawal is permitted in a year.
NOTE: The amounts of withdrawal will not be repaid.
PPF target group:
The Public Provident Fund scheme can be availed by all the Indian citizens without any kind of discrimination due to caste and gender.
Deposits per year:
In the Public Provident Fund scheme, the subscriber is allowed to contribute the minimum of 500 rupees and maximum of 1, 50, 000 rupees every year as of FY 2015-16
Interest on savings:
If a person invests money in the Public Provident Fund (PPF) then, he will acquire 8.70 percent interest yearly (2014-2015). But, the fact that the subscriber needs to keep in mind is that the interest rate in the Public Provident Fund scheme keeps on changing time to time every financial year.