New Delhi, Business Desk. If you want to invest for a long time and are looking for a better return investment option, then you can invest in Public Provident Fund i.e. PPF. A special advantage of this with a better interest rate is that the income tax exemption can be availed at three places in this investment option. The customer gets the benefit of income tax rebate on the investment amount in PPF, on the interest income and then on the maturity amount.
Apart from the post office, some banks also provide PPF facility. Customers can also invest in PPF through the country’s largest bank SBI. For this, the customer needs to fill a Form-A and submit it along with the necessary documents to any branch of SBI. Please tell here that only one PPF account can be opened by one person.
Eligibility
PPF account can be opened by any adult Indian citizen. At the same time, his mother or father can open PPF account on behalf of the minor child. In case of death of parents of minor children, grandparents can open PPF account on behalf of minor.
These documents will be needed
Copy of PAN card with Form-A / Form 60-61, Passport size photo, ID proof and copy of the documents related to residence certificate and nomination form as per KYC rules of the bank for opening PPF account with State Bank of India. Is required.
Also Read: careful! Cyber ​​threat on banking services in high risk zone
Rate of interest
The interest rate on PPF account is fixed by the government every three months. Currently the interest rate on public provident fund is 7.1 percent and the PPF account has a term of 15 years.
PPF calculator
PPF investors can use the SBI PPF calculator to calculate their returns according to interest rate and duration. Through PPF calculator, investor can also calculate PPF maturity amount, interest income, loan on PPF and instant PPF withdrawal amount.
investment amount
A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in a PPF account in a financial year. Here one can invest in lump sum or maximum 12 installments. If the investor does not invest even a minimum of 500 rupees in the PPF account till the completion of the financial year, then a penalty of Rs 50 per year is levied.
