- PPF can be opened at Post Offices or Nationalized Banks.
- Has mandatory locking of 15 Years and can be extended further 5 years at a time
- Maximum Investment Allowed: Rs 1.5 Lakh per Year (Budget 2014 increased this limit )
- Minimum Investment of Rs 500 required every year to keep the account active
- Interest Rates paid on PPF are market linked onward hence would vary every quarter The interest rate is 7.6% w.e.f 1.1.2018
Advantages
- The interest earned on PPF is Tax Free
- After opening the PPF account, investment can be done online every Year
- Can take loan against PPF and also do partial withdrawal
- It cannot be attached by court orders
- Highest Safety – backed by Govt.
Disadvantages
- Longer Locking period
- The PPF interest rates are market linked and hence would change every year
- HUFs and NRIs cannot open PPF Account
Tips
- Investment done till 5th of the month earns interest for the month. So deposit your money before 5th of month
- PPF can be opened on minors name with either parents as guardian
- The total investment in your PPF and the minor child PPF account (for whom you are guardian) should not exceed Rs 1.5 lakh in a financial year