PPF Latest Update: Public Provident Fund (PPF) is a good option to invest in small savings schemes. Here you can start with less money and deposit up to a maximum of 1.5 lakh rupees in a year. Here your money is completely safe.
PPF Latest Update: Public Provident Fund ie PPF is a good option to invest in small savings schemes. Here you can start with less money and deposit up to a maximum of 1.5 lakh rupees in a year. Here your money is completely safe. The interest rate on PPF has been kept at 7.10 percent for the last days by the government. But in the last few years, the government has changed its rules. Let’s know about these changes.
Money will be deposited only once in a month
Investment in PPF account is necessary in multiples of Rs 50. This amount should be at least Rs 500 or more annually. But in the PPF account, you can deposit up to 1.5 lakh in the entire financial year. Only on this you get the benefit of tax exemption. Apart from this, money can be deposited in PPF account only once in a month.
Huge reduction in interest rate
You can also take a loan against the balance in the PPF account. This interest rate has been reduced from 2 percent to 1 percent in the last days. After paying the principal amount of the loan, you will have to pay the interest in more than two installments. Interest is calculated on the first of every month.
Now the account will remain active even after 15 years
Even after investing for 15 years, if you are not interested in investment, then you can continue your PPF account without investment. After the completion of 15 years, it is not necessary to deposit money in this account. You can withdraw money only once in a financial year by opting to extend the PPF account after maturity.
This form has to be filled to open an account
To open a PPF account, instead of Form A, Form-1 has to be submitted. For extension of PPF account after 15 years (with deposits) one year before maturity, one has to apply in Form-4 instead of Form H.
Loan Against PPF Rules
Loan is also available on PPF account. Its rule is that two years before the date of application, you can get a loan only 25 percent of the balance in your account. Understand this in easy language, you applied for the loan on 31st March 2022. Two years before this (March 31, 2020), if there was 1 lakh rupees in the PPF account, then you can get 25 percent of it i.e. 25 thousand loan.
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