PPF: Basics
Public Provident Fund (PPF): Overview
If you haven't already started on a long-term savings strategy, you could begin with a Public Provident Fund (PPF) subscription . A government-guaranteed fixed income security, this is very apt as a long-term savings instrument. Yearly subscriptions can be as low as Rs. 500 to as high as Rs. 1,00,000.
It counts being among the most secure investments you can have in this country. The interest earned on the PPF subscription is compounded; that means you not only earn interest in the money you put in, but you earn interest on the interest earned too. All the balance that accumulates over time is exempt from wealth tax.
A flip side, its an extremely illiquid investment instrument. Its lengthy lock-in period works out to 16 years since the last contribution is made in the 16th financial year. In all, the PPF is a very good savings instrument, and you should consider investing in it.
PPF: Did you Know
- What happens to a PPF account in event of the depositor's death? If a PPF account holder dies and there is no nomination, who gets the deposited amount?
- For how many years can a PPF account be extended beyond its initial 15 years of operation?
- Can a PPF account be allowed to continue if the total deposit in a financial year falls short of the minimum of Rs.500 or should it be closed without interest?
- Is there any fee for cancellation or variation of nomination for PPF accounts?
PPF: Basics
PPF: Did you Know
- Do I have to contribute every year to my PPF account?
- What happens to a PPF account in event of the depositor's death? If a PPF account holder dies and there is no nomination, who gets the deposited amount?
- For how many years can a PPF account be extended beyond its initial 15 years of operation?
- Can a PPF account be transferred from one branch of a bank to another branch, or one post office to another post office? What is the process?
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