Opening a PPF account is very easy, for this you need some documents. The interest rate of PPF account is maintained uniformly across all post offices and banks. The current applicable Post Office PPF interest rate is 7.1%.
There are many such schemes of the post office, in which you can make a fund of lakhs by investing even a small amount of money. One such scheme is Public Provident Fund (PPF), which is known for its guaranteed returns and tax benefits. Opening a PPF account is very easy, for this you need some documents. The interest rate of PPF account is maintained uniformly across all post offices and banks. The current applicable Post Office PPF interest rate is 7.1%.
Eligibility for opening a PPF account in a post office –
- Any resident including salaried, self-employed, pensioner etc. can open a PPF account in an Indian post office.
- Minor PPF account can be opened in the post office by the parent/guardian on behalf of the minor child.
- Non-residents are not allowed to open a new PPF account. However, if a resident Indian becomes an NRI before the maturity of the PPF account, one will become eligible for the same.
These documents are required
to apply under this scheme, you have Voter ID, Passport, Driving License, Aadhar Card and Address for Voter ID, Passport, Driving License, Aadhar Card, PAN Card and Passport. Size photograph and Enrollment Form- Form E are required.
Benefits of Post Office Public Provident Fund (PPF) Account
- The interest rate linked to the post office PPF account is higher than many schemes. The current interest rate is 7.1%.
- It can be invested for long term.
- The minimum investment in a financial year is Rs 500, which is great for those who cannot invest a huge amount.
- You can open a post office PPF account either by check or cash, whichever is more convenient.
- The maturity period of PPF account is 15 years. However, it can be extended without a block of 5 years.
- You can avail nomination facility.
- Premature withdrawal is also allowed but only after completion of 5 years of continuous investment
- Investors can also avail loan facility from the third financial year also.
- Premature closure of PPF account is also available in special circumstances.
