Public Provident Fund (PPF) was introduced in India in 1968 with the objective to mobilise small savings in the form of investment,coupled with a return on it.It can also be called a savings-cum-tax savings investment vehicle that enables one to build a retirement corpus while saving on annual taxes.Anyone looking for a safe investment option to save taxes and earn guaranteed returns should open a PPF account.

Who can open:
(i) a single adult by a resident Indian.
(ii) a guardian on behalf of minor
Note:
1)Only one account can be opened all across the country
2)Joint Account Shall not be opened under the Scheme

Deposit:
Minimum deposit Rs. 500 in a Financial Year and Maximum deposit is Rs. 1.50 lakh in a Financial Year

Duration:
(i)Scheme Period is 15 Years

Interest:
From 01.04.2023, interest rates are as follows:- 7.1% per annum (compounded yearly).
(i) Interest shall be applicable as quarterly basis.
(ii) Interest shall be credited to the account at the end of each Financial year.

Discontinuation of account:
(i) If in any financial year, minimum deposit of Rs.500 is not made, the said PPF account shall become discontinued.
(ii) Discontinued account can be revived by the depositor before maturity of the account by deposit minimum subscription (Rs. 500) + Rs. 50 s default fee for each defaulted year.

Loan Facility:
(i) Loan can be taken after the expiry of one year from the end of the FY in which the initial subscription was made.
(ii) Loan can be taken before expiry of five years from the end of the year in which the initial subscription was made.
(iii) Loan can be taken up to 25% of balance to his credit at the end of the second year
(iv) Only one loan can be taken in a Financial Year.

Withdrawal:
(i) A subscriber can take 1 withdrawal during a financial after five years excluding year of account opening.
(ii) Amount of withdrawal can be taken up to 50% of balance at the credit at the end of 4th preceding year or at the end of preceding year, whichever is lower.

Maturity:
(i) Account will be maturity after 15 F.Y. years excluding FY of account opening.
(ii) On maturity depositor has the following options:
(a) Can take maturity payment by submitting account closure form along with passbook at concerned Post Office
(b) Can retain maturity value in his/her account further without deposit, the PPF interest rate will be applicable and payment can be taken any time or can take 1 withdrawal in each FY.
(c) Can extend his/her account for further block of 5 years and so on (within one years of maturity) by submitting prescribed extension form.
(d)Discontinued account cannot be extended

Premature closure:
(i) Premature closure shall be allowed after 5 years from the end of the year in which the account was opened subject to following conditions.
-In case of life threatening disease of account holder, spouse or dependent children.
-In case of higher education of account holder or dependent children.
-In case of change of resident status of account holder ( i.e. became NRI).
(ii) At the time of premature closure 1% interest shall be deducted from the date of account opening.

Death of account holder:-
In case of death of account holder, the account shall be closed and nominee or legal heir(s) shall not be allowed to continue deposits in the account.

Tax Benefits:
Tax benefit under section 80C up to 1,50,000 per Year Interest earned is tax free under Income Tax Act. Matured amount is Tax Free

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