PPF Major Changes: The interest earned on the PPF account will be reviewed in the September quarter. Before this, it is important for you to know about the changes made by the government in this savings scheme.
PPF Calculator: If you also invest in small savings schemes like PPF, Sukanya Samriddhi Yojana or NPS etc., then you will get information about the changes made by the government from time to time. Staying updated is a must. The interest rates on such savings schemes are reviewed by the government every quarter of the financial year. The government did not make any changes during the review in the last June quarter. Due to this crores of investors were also shocked.
Review on interest rate will be done in September
Now the interest on small savings schemes will be reviewed in September. Along with this, the interest rate of PPF will also be reviewed. Public Provident Fund (PPF) is a good investment option. Here you can start with less money and deposit up to one and a half lakh rupees in a year. Your money is completely safe here. The government has kept the interest rate on PPF at 7.10 percent for the last days. Its rules have been changed in the last few years. Let us know about them.
Money will be deposited only once every 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, you can deposit money in PPF account only once in a month.
Drastic 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.
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. It is not necessary to deposit money in this account after the completion of 15 years. 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 a loan on 31 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.
