PPF Account : If the minimum amount is not deposited, your PPF account is closed. If your PPF account has also been closed and you want to start it again, then know the method here-
Public Provident Fund is a government scheme in which any Indian citizen can invest. This scheme matures in 15 years. If you want to invest in a scheme in which you get better interest and your money is also safe, then PPF can prove to be a profitable deal. In this scheme, the benefit of compounding interest is available, along with this, tax benefits are also available under Income Tax Act 80C. Through this scheme which gives double benefits, you can add a good amount of money in 15 years.
At present, interest on PPF is 7.1 percent. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in PPF. If the minimum amount is not deposited, your account is closed. If your PPF account has also been closed and you want to start it again, then know the method here-
This is how a closed account will be activated
You can reopen a closed PPF account any time before maturity. For this, the depositor will have to go to the post office or bank branch where he has his account. There, a written application will have to be given to reopen the PPF account. Also, a minimum default fee of Rs 500 + Rs 50 has to be deposited every year. Suppose your account has been closed for three years, then you will have to deposit at least Rs 1500 and a default fee of Rs 150 for every three years. After this your account will be continued again. Please note that loan/withdrawal facility is not available on closed accounts.
Benefits of PPF
- The first advantage of PPF is that any Indian citizen except NRI can avail the benefit of this scheme.
- It also has the advantage of flexibility regarding investment. In this, a minimum of Rs 500 and maximum of Rs 1.5 lakh can be deposited.
- You can get a loan up to 25% of the amount deposited on PPF between the third financial year to the sixth financial year of account opening.
- Tax benefit is available on PPF under Section 80C of Income Tax. The maturity amount is also tax free.
- PPF is managed directly by the government. Your investment is completely safe in this.
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