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Over the last two decades, Public Provident Fund (PPF) has given a decent return. Analyzing the past trends, we can say saving some bucks on PPF Account today can give you a good reward on maturity. Savings on PPF Account is still a lucrative avenue. We will tell it here.

We always think of saving for tomorrow, saving for our children’s education, saving for their weddings and for any contingency that may arise. Actually, saving and investing a small amount of money on a regular basis can secure your future and give you a mental peace.

 Most Indians cannot afford big ticket savings. By and large, we can save small amounts every month. We would prefer to put our savings in schemes which would earn us good returns. We look for tax saving schemes on our investments and put the security of our hard-earned money above all other considerations because we Indians are by nature, cautious. All these characteristics are available under Public Provident Fund (PPF). The current PPF interest rate is 8% per annum w.e.f. April 1, 2019.

Where can I open My PPF Account?

Have a glance on the list of prominent banks, where you can open your PPF Account

ICICI Bank	Bank of India
Allahabad Bank	Oriental Bank of Commerce
SBI Bank	Bank of Maharashtra
HDFC Bank	Vijaya Bank
Bank of Baroda	Indian Bank
IDBI Bank	Dena Bank
Punjab National Bank	Central Bank of India
Canara Bank	Union Bank of India

Can I know more about Public Provident Fund?

Under Public Provident Fund (PPF), an investor can save Rs 500 to Rs 1,50,000 in any financial year. Usually, the maximum tenure for PPF Account is 15 years, you can increase the tenure on a block of 5 years thereafter. PPF has been set up with the aim of mobilizing small savings for long terms, so that these small savings could mature into significant amounts and help in maintaining fiscal discipline among the masses. This scheme has fixed returns and makes the lives of millions of Indians monetarily safe.How to get loan against ppf?

The rate of interest is fixed by the Finance Ministry of the Government of India. Every Indian can open a provident fund account in his own name. He can also open PPF accounts in the names of each of his minor children.

This scheme runs for fifteen years and can be renewed for five years each time after that.

Today PPF accounts give the best interest on savings. The rate of interest does not fluctuate much. In the year 2018-2019, savings in PPF yielded an interest of 8%. This is more than any other savings scheme available in the market. PPF is also the safest as there is no market hazard involved. The rate of interest has been almost constant since the year 2000. The fluctuations in the rate of interest have been negligible. Even then people who invested their hard-earned money were devastated by those marginal ups and downs.

Eligibility for opening a PPF account

• Only Indian residents can contribute to a PPF account.
• NRIs who had started to contribute to a PPF account while in India can operate the account until 15 years.
• HUFs (Hindu Undivided Families) cannot open PPFs after 13th May 2005. All PPF accounts opned prior to this date can be operated till the maturity period of 15 years without extension. 

Can I Qualify for a Public Provident Fund? 

All Indian citizens can open Public Provident Fund account. This account can be opened in any nationalized bank, for example, any branch of the State Bank of India. Apart from these banks, Public Provident Fund accounts can also be opened in some other private banks such as in branches of HDFC, ICICI, and AXIS Bank.

Each Indian can open only one PPF account for himself.

Every Indian can open accounts for each of his minor children. Each minor can in effect have two Public Provident Fund accounts in his name, opened by each one of his parents. Loving grandparents who want to open a Public Provident Fund account in the name of a grandchild, can do so only in the unfortunate event of the minor being an orphan.

Non-resident Indians cannot open PPF accounts. In case they already had an account with PPF before they left for foreign lands, they cannot renew it after fifteen years.

How to open a Public Provident Fund Account in India?

 There are mandatory requirements to be fulfilled to open a PPF account.

• The first requirement is getting a form from any authorized bank and filling it carefully. You can fill the form online also.
• Along with the form, you have to submit a copy of your Aadhaar card and permanent account number (PAN) card.
• When you submit these, you need to submit originals along with you for verification.
• All copies that you submit must be self-attested. Of all these proofs, the PAN card is the most important.
• You must also submit address verification papers. This could be a landline telephone bill in your name. You can also use an electricity bill in your name for this purpose. Your voter identification card and passport also carry your address and are accepted by banks as address proofs.

Payments to Public Provident Fund 

Interest is calculated from the 5th of every month. PPF interest is calculated on the basis of balance in the account on the 5th of each month. So if you are contributing on a monthly basis, make the payment before the 5th to reap the best benefit.

You are allowed to deposit up to a maximum of Rs. 1 lakh and fifty thousand every year.

What are the Prominent terms used in Public Provident Fund Calculations?

When one understands the terminology used in any calculation, it is easier to understand how a certain sum was arrived at.

Opening Balance: The sum in your account at the start of a year is said to be the opening balance.

Amount Deposited: This is the balance in your PPF account at the end of the financial year after taking into account all the money you have deposited.

Interest Earned: PPF Interest is calculated on the amount in the account at the end of a financial year.

Closing Balance: This is calculated at the end of a financial year after adding the interest due on the amount.

PPF calculator: One of the easiest ways to calculate the PPF is using the PPF calculator. There are many online calculators which aids the process of calculating the PF. You can easily search them online or else you can also find the same on the website of your shortlisted bank.

How to Use PPF Calculator?

When you are using the PPF calculator, you need to fill the following information:

1. Tenure- Enter the tenure, you can increase the number by a block of 5 years.
2. Payment frequency- You can choose monthly, half-yearly, quarterly or even annually.
3. Deposit Amount – It is the amount that you will be depositing in the PPF account.
4. Interest Rate – It is the return that you are expecting on the PPF. You can compare the rate of interest offered by different banks and financial institution and based on it, you can make the decision.

Is there any Facility with Public Provident Fund?

You can avail of a loan on the balance in your account after you have been depositing in the account for three years. You can withdraw till the sixth year. After that there is embargo on withdrawals. The amount that you will get in hand is 25% of the total amount which was in your account at the end of two years. 

The interest charged on the loan is equal to the interest you are earning on your deposits plus two percent. If the interest you are earning today is 8%, then the rate of interest on the loan taken today will be 10%.

Public provident fund loans have to be repaid within thirty-six months. If the period is extended, a penal rate of interest will be charged.

No fresh loan is available until the earlier loan is paid off along with the interest that accrued.  

Can I transfer my PPF Account?

Why not? You can get it transferred from your bank to a post office or vica versa. Also, as per your convenience, you can transfer the PPF Account between different branches of the same bank.

How can I withdraw from the Public Provident Fund?

Circumstances may be such that you need to withdraw all your savings from your Public Provident Fund account. You can withdraw only up to 50% after you have been contributing for six complete years. This is possible only if no other withdrawals have been made earlier.

There are tax benefits under section 80C of the Income Tax Act. The same tax benefits apply when your PPF matures. Public Provident Fund is the safest and most interest efficient scheme today and has been the most popular for decades.

On what grounds can my PPF Account be closed?

The PPF Account cannot be closed within 5 years of opening your account. The account will only be closed on specific grounds such as life-threatening problems affecting the account holder or his/her spouse. However, in this case, the supporting medical documents need to be produced