PPF Account Update:- Another major update for investors. If you’re considering investing in the widely used Public Provident Fund (PPF), this update is for you. The central government has just revealed the interest rates for small savings schemes for the upcoming quarter. Let’s dive into what’s been decided regarding the PPF interest rate.
What is the PPF scheme?
In the PPF scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh yearly. You can make this investment either as a lump sum or in installments. However, you can only make 12 contributions in a PPF account each year. To keep your account active, you need to invest every year.
It’s important to note that there’s a 15-year lock-in period for PPF investments, meaning you can’t withdraw the full amount until this period is over. You can extend this lock-in period by 5 years after the initial term ends.
Loan facility
You can take out a loan against your PPF investment. However, this option is available only between the start of the third year and the end of the sixth year after your account is opened. The maximum duration for such a loan is 36 months.
Who can open an account?
Only Indian citizens living in the country can open a PPF account in their name. Minors can also have a PPF account, but their parents must manage it. Non-resident Indians are not permitted to open new PPF accounts.
Interest on PPF account
The government has decided to keep the interest rate for the Public Provident Fund (PPF) unchanged for the next quarter. It remains steady at 7.1 percent, just like before.