Bisogno di aiuto per capire i termini relativi al PPF (Public Provident Fund) in India
What is the current rate of interest of Public Provident Fund PPF?
7.1%
The current PPF interest rate offered by the Government on PPF is 7.1% compounded annually.
How much I get after 15 years in PPF?
PPF Calculation Examples for Different Investment Tenures
| Investment Period | Total PPF Investment | Total Interest Earned |
|---|---|---|
| 15 years | Rs. 1.5 lakh | Rs. 1.4 lakh |
| 20 years | Rs. 2 lakh | Rs. 2.88 lakh |
| 30 years | Rs. 3 lakh | Rs. 9 lakh |
How is PPF maturity amount calculated?
Suppose, an individual pays an annual amount of Rs. 2,00,000 in their PPF investment for a period of 15 years at an interest rate of 7% then his/her maturity sum at the closing year will be equal to 5763698.
F = P [({(1+i) ^n}-1)/i]
| I | Rate of interest |
|---|---|
| F | Maturity of PPF |
| N | Total number of years |
| P | Annual instalments |
What is benefit of PPF account?
The tax-exempted amount deposited in the Public Provident Fund in each financial year up to Rs. 1,50,000 is exempted from tax. The interest earned on PPF is also free from tax liabilities. Also, at the time of withdrawal, the maturity amount including the principal sum and the interest is free from taxation.
What is the rate of interest for PPF for 2020 21?
The current interest rate for Q4 (January-March) FY 2021-22 for PPF accounts has been fixed at 7.1%.
How PPF Interest Rates Have Changed Over the Last 5 Years?
| Period | Interest Rate on PPF |
|---|---|
| January -March 2021 | 7.1% |
| October -December 2020 | 7.1% |
| July-September 2020 | 7.1% |
| April-June 2020 | 7.1% |
What is the PPF interest rate for 2021 22?
The interest rate on the Public Provident Fund (PPF) will remain at 7.10 percent for the final quarter of FY 2021-22. The interest rate on the Public Provident Fund (PPF) will remain at 7.10 percent for the final quarter of FY 2021-22.
Which bank is best for PPF?
State Bank of India (SBI), which is the largest bank in the country, offers the PPF scheme with a good interest rate. SBI has over 15,000 branches in India, therefore, getting access to the scheme is easy. Opening of the PPF account offered by SBI can also be done online.
What if I deposit more than 1.5 lakh in PPF?
If PPF deposits exceed prescribed limit
In such a situation, the excess amount breaching the prescribed deposit limit in the PPF accounts will be refunded to the individual after the merger of the account. This amount will be refunded without any interest.
Which is better NPS or PPF?
PPF generates fixed returns on the fixed income category, whereas equity pension funds under NPS can deliver higher returns in the long term. However, PPF investments come with lower risk as compared to NPS investments which depend on markets.
What are the disadvantages of PPF?
Cons of PPF
- The lock-in period is long-term, i.e., for 15 years.
- Joint accounts are not permitted, i.e., one person can only handle one account except it is of a minor.
- NRIs and HUFs cannot open an open account.
- There is a maximum limit of Rs. 1.5 lakhs laid for depositing in a PPF account.
- There is no liquidity.
Can I withdraw PPF after 5 years?
Yes, you can withdraw money from your PPF account if you have completed 5 years of continuous contributions. For that, you need to obtain Form-C (PPF Withdrawal Form) from your respective bank, fill it and submit the same along with an application for withdrawal at the bank.
Can we have 2 PPF accounts?
PPF New Rule
An individual can not have multiple PPF accounts under his or her name, according to the PPF rules, 2019.
Can husband and wife have different PPF account?
By, opening PPF account in the name of spouse, the investor will be able to double one’s investment limit from ₹1.5 lakh to ₹3 lakh and will enjoy income tax exemption on PPF interest earned and PPF maturity amount in both PPF account.”
Can a senior citizen open PPF account?
PPF accounts can be started at any time and by anyone. There is no age limit to open a PPF account as long as the contributions to PPF account are made at regular intervals of time to earn healthy returns in the future.
Can I increase the PPF amount?
An individual cannot deposit more than Rs. 1.5 lakh to a given PPF account, in a year. The increase is provided to make the scheme more lucrative to people.
How many PPF account a person can have?
one PPF account
As per the old rule, legally you are not allowed to open two PPF accounts. One person must have only one PPF account. Suppose you knowingly or unknowingly opened two accounts in Post Office, Bank or one in the post office and another in a bank, then the SECOND account will be treated as an irregular account.
Will my PPF interest rate change every year?
The PPF interest rate is set every year by the ministry of finance and is paid each year on 31st March. The PPF interest is calculated by the lowest balance between the end of the fifth and the last day of every month.
How many years we can extend PPF?
5 years
In case the individual wishes to extend the tenure of the PPF account, he/she can do the same but in a block of 5 years at a time. Also, if an individual does not withdraw the money after maturity, the tenure will extend automatically.
What happens after 15 years of PPF account?
NEW DELHI: A Public Provident Fund (PPF) matures in 15 years. But it’s not mandatory for the depositor to close the account. You can extend it indefinitely in blocks of five years. One option for the account holder is to withdraw the entire amount, including interest, and close the account on maturity.
When can we close PPF account?
five years
An account holder can opt to close his or her PPF account prematurely under certain circumstances. This can be done when five years have already elapsed since the account was opened. PPF accounts can be closed if the account holder, his or her parents, spouse or dependent children are suffering from a terminal disease.
What are the rules for PPF account?
Deposit rules:
You have to make at least one deposit per year for 15 years. The PPF minimum deposit is ₹500, while the maximum that can be invested in a financial year is ₹1.5 lakh. If you make any deposit in excess of ₹1.5 lakh in a financial year, the transaction will be automatically rejected.
Is it mandatory to deposit every year in PPF?
The deposits must be made every financial year during the tenure and such deposits are exempt from income tax u/s 80C. You are required to make a minimum deposit of Rs. 500 per financial year to keep the account active. If you fail to make this deposit, the account will be discontinued.
What is financial year for PPF?
Public Provident Fund (PPF)
The minimum yearly contribution for the PPF account in a fiscal year is ₹500. The last date to make this payment for the current financial year is March 31, 2022. If a minimum contribution is not made in the financial year, the PPF account will be treated as dormant.
Is PPF better than LIC?
Comparing the two investments would result in drastic differences. While LIC policies serve the purpose of insurance, a PPF serves the purpose of savings.
PPF VS LIC.
| Points | LIC | PPF |
|---|---|---|
| Scheme | Insurance | Investment |
| Purpose | Risk Protection | Savings |
| Risk | Safe | Safest |
| Target audience | Caters to those who have dependents | Caters to everyone |