The central government is running various savings and investment schemes to provide financial security to the common people of the country. PPF, or Public Provident Fund, is one of these schemes. Currently, the central government is offering an annual interest rate of 7.1% on PPF. You must deposit money in a PPF account at least once a year. You can invest a lump sum amount or deposit money in installments. The minimum deposit is ₹500, and the maximum is ₹1.5 lakh per year.
PPF Account Matures in 15 Years
A PPF account matures after 15 years. However, you can extend it for another 5 years by submitting a form. This extension can be done multiple times, allowing the account to run for a maximum of 50 years. You can open a PPF account in any bank or at your nearest post office.
If you deposit ₹50,000 every year in your PPF account, after 25 years, you will have a total of ₹34,36,005. This includes ₹12,50,000 as your investment and ₹21,86,005 as interest.
Every Rupee in a PPF Account is Safe
Since PPF is a government-backed scheme, every penny deposited is completely safe. You also get fixed and guaranteed returns.
- However, withdrawals are restricted:
- You cannot withdraw any money before 5 years of account opening.
- After 5 years, withdrawals are allowed only in specific cases, such as medical emergencies or children’s education.
- Additionally, PPF accounts offer loan facilities to account holders.
How to Open a PPF Account Online
- Login: Access your bank’s net banking or mobile app and log in.
- Go to PPF: Find the “Open PPF Account” option under Investments or Deposits.
- Fill Details: Enter the required information (deposit amount, nominee, etc.).
- Upload KYC: Provide Aadhaar, PAN, or other documents if needed.
- Deposit Money: Transfer the amount (₹500–₹1.5 lakh yearly).
- Submit: Confirm and submit the application.
- Get Receipt: Save the account confirmation for reference.
Disclaimer:
This information is for general purposes only. Please consult a financial advisor before making any investment.