PPF Account Agent Commission
Public Provident Fund is a savings scheme launched and run by Govt. of India since its introduction in 1968. It is a 15 years scheme which is a one of the favorite investment plans of all sections of society in India. It has not only a great investment plan, but also it caters the needs of a retirement plan. As it is totally operated and maintained by the Finance Ministry, Govt. of India, your money is totally safe and secure.
Any person above 18 years of age can open only one PPF account. There is a scheme of opening PPF account in a minor’s name, but that can only be done by the parent or legal guardian. Foreigners and Indians staying outside the country or commonly called Non Residential Indians (NRIs) cannot open a PPF account. A PPF account can be opened in any nationalized bank or post office. It can also be done online. The person has to fill up the PPF form and submit relevant documents along with it. An account holder will have to invest a minimum of Rs. 500 per financial year and the maximum investment limit per year is Rs. 1.5 lakh as of FY 2015-16. This amount can be deposited either at a time or may be deposited in up to 12 installments.
The PPF account will get matured after 15 years. However if anyone wishes to extend it further, he or she can do it by blocks of 5 years more. The NRIs however if they already have PPF account before leaving India cannot extend it further. The interest rates earned on the PPF account are fixed by the Govt. every year which are very competitive according to the market and gives a good return to your money. The interest is compounded annually. One more advantage of having a PPF account is that as it is a totally Central Govt. administered investment policy, it is a great tax saving tool. The investments made in a PPF account are eligible for tax deductions under Section 80C of Income Tax Act. Also the interest earned is entirely tax free which are not so for the other investments policies in the market.
Earlier the agents, especially from the banks used to get an agent commission of 1% for opening one PPF account. PPF agents used to help people open up the PPF account and motivate them to invest in it. But in Dec. 2012, Govt. decided to remove the 1% agent commission to make the scheme more favorable for the investors, not making it an earning source for agents.
Most investment policies available in the market other than PPF provide a nice share of agent commission to their serving agents who make advertisements and claims and motivate people to join their investment policies. But it’s the common people’s hard earned money that goes to the pockets of those agents. So PPF is one of a kind investment policy that fives 100 per cent run for your money and gives a great amount of return after maturity, that too without any tax deductions.