Public Provident Fund (India)

Public Provident Fund (PPF) is a savings-cum-tax-saving instrument in India. It also serves as a retirement-planning tool for many of those who do not have any structured pension plan covering them.The account can be opened in designated post offices, State Bank of India branches and branches of some nationalised banks. ICICI Bank was the first private sector bank which was authorized to open PPF accounts. Individuals who are residents of India are eligible to open an account under the Public Provident Fund scheme. A PPF account may be opened under the name of a minor by his/her legal guardian. However, each person is eligible for only one account under his/her name. Non-resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme. However a resident who becomes an NRI during the 15 years' tenure prescribed under Public Provident Fund Scheme, may continue to subscribe to the fund until its maturity on a non-repatriation basis.. 1000

Investment and Returns[edit]

A minimum yearly deposit of Rs. 500 is required to open and maintain a PPF account, and a maximum deposit of Rs.100000/ can be made in a PPF account in any given financial year. The investments can be made in multiples of Rs. 500, either as a whole sum, or in installments (not exceeding 12 in a year, though more than one deposit can be made in a month). The credit to the PPF account is made on the date of clearance of the cheque, not on the date of its presentation Every subscription should be made in cash or through a crossed cheque or draft or postal order, in favour of the accounts office, at the place at which that office is situated. In case of any cheque, draft or postal order should be drawn at a bank or post office at that place. It is also possible to transfer funds online using net banking in a PPF account opened with SBI also NEFT Transfer from any bank is possible with [1] sbi ppf accounts. The government of India decides the rate of interest for PPF account. The current interest rate effective [2] from 1 April 2013 is 8.70% Per Annum(compounded annually). Interest is calculated on the lowest balance between the close of the fifth day and the last day of every month. Till March 2010, cheques deposited for clearing, up to 5th of the month were eligible for that month's interest. Since 29 March 2010, only the amounts which are actually cleared on or before the 5th of the month are eligible for that month's interest. The minimum tenure of the PPF account is 15 years, which can be further extended in blocks of 5 years each for any number of blocks. The extension can be with or without contribution. An account holder, continuing with fresh subscription, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installments but only once in a year. Nomination facility is available. In the case of joint nominees, it is possible to allocate the percentage of benefits to each nominee.

Interest rates over time[edit]

01.04.1986 to 14.01.2000.............................. 12% 15.01.2000 to 28.02.2001............................. 11%

01.03.2001 to 28.02.2002 ............................ 9.5% 01.03.2002 to 28.02.2003 ............................. 9% 01.03.2003 to 30.11.2011.............................. 8% 01.12.2011 to 31.03.2012.............................. 8.6% 01.04.2012 to 31.03.2013.............................. 8.8% 01.04.2013 onward....................................... 8.7%
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