In your quest for hunting down the perfect investment avenue, you must have definitely chance upon the PPF scheme. It is one of the golden eggs of investment. For salaried persons, it is not less than a blessing in disguise as it is not only tax-free, it presents better returns than boasted by any other investment. It is a great option for investors who have a minimum risk appetite when it comes to financial investments
The benefits of owning a PPF scheme are endless. The cherry on the cake is PPF can now be opened and accessed online, thanks to the efforts of the governmental technological innovation.
So what should one know about the PPF scheme?
- A PPF Scheme Can Be Opened Through A Post Office Or Select Bank Accounts
To make it easy for individuals to own a PPF account, the government has given the responsibility of opening an account to post office and banks, in the recent past. This move was initiated to make the transaction or investment process easier.
- An Affordable to All Investment Option
One of the stellar PPF online details are minimum investment to sustain the account is just Rupees 500 and the maximum limit is 1.50 thousand per annum. Most investment options demand at least 1000 rupees as minimum payment. Since the PPF scheme is a government initiative the minimum investment is a meager amount.
- Information About the Lock-In Period in PPF
As per the PPF rule, the initial lock-in period for PPF is 15 years. However, if an individual decides to prolong this investment, they can do so by extending it for another five-year period.
- The Availability of Nomination and Transfer of PPF Account
The PPF account can be transferred from the post office to the bank which has the PPF facility open, and vice versa. One can nominate one or more persons and the bifurcation of the fund can be decided by the subscriber.
- Your PPF Can Be Accessed Online Too
Now-a-days all banks have their banking sites online. All one has to do is to simply log on with one’s credentials and select the PPF option. First, check if it is activated on the banking site. If not, get in touch with the customer care who can help you with the troubleshooting. Once the account is visible, you can check on the updates and growth of the PPF scheme.
- Best Rate of Interest
The rate of interest was revised in 2017 and is at 7.9 percent on investment, per annum. This rate is reviewed quarterly by the Central Government but revision is subject to government policies. Interest calculation happens on the minimum balance in the account between the 5 and the end date of a particular month.
- Premature Closing of the PPF Account
Although it is not recommended from an investment point of view, the PPF scheme can be withdrawn wholly. Earlier only PPF account holders were only entitled to partial withdrawals or using it as an asset for mortgage. In current times, in case of severe hospitalization PPF scheme can be withdrawn. However, the lock-in period of 5 years is mandatory.
For higher studies, PPF online details can be checked and after producing valid documents like name of university and fee structure, which will then be approved. The PPF scheme can be withdrawn.
- PPF Cannot Be Showcased as an Attachment in Court
The PPF scheme is one’s personal holding hence it cannot be produced in court to quell debtors concerns. Hence, the benefit of a PPF account goes solely to the account holder.
- Your PPF Account Is A Secure Account
At any given point of time, a single individual can open only one PPF account, either in the bank or at the post office. One is not allowed by law to hold more than one PPF account. Hence, one can say that is it a secure form of investment. In addition, when opening a PPF account one has to declare the same on the account opening formalities
- Know the Interest You Will Gain
One of the major pro and con is that Personal Provident Funds are not linked to the stock market to the returns are not dynamic but steady.
After going through this write-up, you must have gained a fair knowledge of what Personal Provident funds are about. So it is best to not waste any more time and invest in a PPF Scheme. All you need is the account opening form which you will get at the post office or select banking institution and your identity proof and address proof. Once these are verified, your account is good to go. And last but not the least, do not forget to check your PPF online details.