Jul 172015

It is a scheme that goes on for 15 years.  Therefore, according to the rules and regulations, the Public Provident Fund (PPF) account is considered as matured after the end of 15 years from the end of the year in which the account was opened. On the other hand, at the time of scheme maturity this duration is allowed to be extended for a block of 5 years every time.

The best fact about this extension facility is that the candidate can get this extension for desired number of times. And, for doing so the concerned person is required to fill up, form H within the duration of a year for the maturity of the scheme.

What is the minimum and maximum deposit under PPF

Under the rules of Public Provident Fund scheme, the candidate is not allowed to process early withdrawal. The premature withdrawal of the accumulated funds can be done only after the subscriber’s death. In that case, all the accumulated cash will be handed over to the nominee. But, before collecting it all, the nominee is required to submit the required documents for the further processing.

What is the minimum and maximum deposit under PPF?

PPF account calls for a minimum deposit of Rs 500 in order to open and operate the account. In accordance with the PPF rules the subscriber is not permitted to make the investment of an amount higher than 1.5 lacs in his own and even to the minor’s account. Even if you are contributing to your child’s PPF account, the total amount of contribution for all the accounts put together should not exceed Rs 1.5 lakh in order to avail the tax benefits.

Particulars Limit
Maximum deposit Limit PPF Per Year Rs 1.5 Lakhs
Minimum Deposit Limit PPF Per Year Rs 500

On the other hand, as a copious caution, the candidate should be acknowledged with the fact that if in future it is found by the higher authorities that you have not been following the rules then, you might not get any interest on the extra amount deposited to the PPF account.

The investments under this Public Provident Fund scheme can be made in multiples of 500 rupees. The amount can be contributed either in one go, or in installments. Any contributor in PPF account can’t deposit for more than 12 times in their account.  This is the maximum limit of the number of times you can deposit money to your PPF account.

The credit to the Public Provident Fund account is made on the date of approval of the cheque but not on the date of its presentation. The entire accumulated balance can be withdrawn at the time of scheme maturity. The next amazing fact about this scheme is that the interest you receive on the savings is totally tax free.

Almost all of the nationalized banks would invite you to open and operate a PPF account.  You can also open a PPF account in Post Offices.  The individuals who have invested in the Public Provident Fund scheme are free to avail the loan amount after the completion of 3rd year from the date of opening a PPF account.

PPF account for the minor

The other most essential fact about the Public Provident Fund (PPF) is that the government has permitted to open one account per person. In case someone is found with multiple PPF accounts then, all the other accounts except one will be deactivated right away.

PPF account is very much a possibility for a minor, with just a clause that the account would have a caretaker in the form of parent or guardian and the child would not be able to operate the account until they turn 18 years of age.

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