A public provident fund can be opened at any branch of the State Bank of India or its subsidiaries. It can also be opened at any post office and some nationalized banks, which even allow you to open an account online.
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NRIs can continue their PPF account now
Monday, February 26, 2018, 3:51 PM
Non-resident Indians (NRIs) who have invested in the Public Provident Fund (PPF) may have got temporary relief for now. The Department of Economic Affairs (DEA) has released an office memo on February 23, 2018, keeping its earlier notification regarding the Non-resident Indians (NRI's) PPF account released on October 2, 2017, in abeyance (or temporarily dismissed).
PF interest reduction fallout of PNB scam: Mamata Banerjee
Thursday, February 22, 2018, 7:21 PM
West Bengal CM Mamata Banerjee today claimed that the fresh reduction in provident fund interest is a fallout of the PNB-scam and that the working class would suffer hugely due to the rate cut. The Trinamool Congress supremo claimed that the funds were being drawn from the people's pockets to balance the loss of an estimated Rs 11,400 crore suffered due to the PNB-scam.
PPF Act repeal won't impact tax status: Govt
Tuesday, February 13, 2018, 7:47 PM
The government has clarified that no change in interest rate or tax policy on small savings schemes, which includes PPF and NSCs, is being made through the amendments proposed in Budget 2018. Budget 2018 has proposed to merge the Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873.
Existing, new PPF deposits continue to have protection: Garg
Saturday, February 10, 2018, 7:32 PM
Assuaging fears of losing benefits under the Public Provident Fund (PPF) scheme with proposed changes in the Budget, Economic Affairs Secretary S.C.Garg said existing and new PPF deposits would continue to have protection from being attached. PPF deposits enjoy protection from being attached. All existing protections have been saved while consolidating PPF Act under proposed Government Savings Promotion Act, he said in a tweet.
Govt extends deadline for linking Aadhaar with savings scheme
Monday, January 8, 2018, 7:34 PM
Government has extended the deadline for linking of biometric identification Aadhaar to small savings schemes like post office deposits, Kisan Vikas Patra by three months to March 31, 2018. "It has now been decided to extend the last date for submission of 'Aadhaar' number from December 31, 2017 to March 31, 2018," a Finance Ministry notification said.
Banks may not lower small savings schemes’ rates: Icra
Friday, December 29, 2017, 6:07 PM
Banks may not follow the government's move to lower interest rate on small savings scheme as the liquidity conditions are not conducive according to ratings firm Icra. "Despite the recent reduction in small savings rates, we do not expect banks to follow suit and reduce deposit rates, given the recent re-emergence of the liquidity deficit" Icra said in a report.
Govt slashes interest rates on small savings schemes by 0.2%
Thursday, December 28, 2017, 10:15 AM
The government slashed interest rates on small savings schemes, including NSC and PPF, by 0.2% point for the January-March period from the rates applicable in the previous quarter, a move that will prompt banks to lower deposit rates. At the same time, investments in the five-year Senior Citizens Savings Scheme has been retained at 8.3%. The interest rate on the senior citizens’ scheme is paid quarterly.
ICICI Bank offers service to open PPF account online
Thursday, December 7, 2017, 2:57 PM
Private lender ICICI Bank today said it has launched a digital service to allow customers to open a PPF account online, eliminating the need for furnishing paper documents. The digital service will enable customers to open a public provident fund account instantly and in a completely online and paperless manner. The bank said it is the first lender in the country to introduce a fully digital.
Piling up cash is not a good idea.
Wednesday, November 8, 2017, 12:48 PM
Undoubtedly cash offers great flexibility and liquidity, but hoarding it is not a good idea. Just keep minimum the required cash in hand. Your money won't grow idling in your locker at home or in the bank account. Even for risk averse people, there are good options like Public Provident Fund (PPF), National Savings Certificate, fixed deposits and so on.
PPF account will be closed if holder turns NRI
Sunday, October 29, 2017, 8:45 PM
Amending rules on post office savings schemes like the National Savings Certificates (NSC) and Public Provident Fund (PPF), the government has notified that such accounts would be closed prior to maturity in case of holders changing their personal status to become non-resident Indians (NRIs). The amended rules were notified in the official gazette earlier this month.
Banks may cut interest on long-term deposits
Saturday, July 1, 2017, 2:35 PM
In a move that will bring down interest rates in the system, the government has reduced the return on small savings schemes by 10-basis-points. These include schemes such as public provident fund, Kisan Vikas Patra and the senior citizen saving scheme. The interest rate on the PPF scheme is now 7.8%, Kisan Vikas Patra 7.5% and 8.3% on the 5-year senior citizen savings scheme.
Govt slashes small savings rates by 0.1%
Friday, June 30, 2017, 6:28 PM
The government has lowered interest rate on small saving schemes like public provident fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi by 0.1% for the July- September quarter, a move that will prompt banks to lower deposit rates. The rates have been lowered by 0.1% across the board compared to the April-June quarter. However, interest on savings deposits has been retained at 4% annually.
Small saving schemes interest rates lowered by 0.1%
Friday, March 31, 2017, 12:51 PM
The government has lowered interest rates on small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi scheme by 0.1% for the April-June quarter, a move that would prompt banks to cut their deposit rates. For April-June, these have been lowered by 0.1% across the board compared to January-March. However, interest on savings deposits has been retained at 4% annually.
EPFO may invest up to 15% of investable amount in equity markets
Sunday, March 19, 2017, 4:26 PM
Buoyed by the surging stock markets, the Employees Provident Fund Organisation (EPFO) may propose to invest up to 15% of its investable amount in equity markets during the next fiscal, Union labour minister Bandaru Dattatreya said. The EPFO had started investing in ETFs in August 2015. EPFO manages a corpus of over Rs 8 lakh crore.
Public Provident Fund Education
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3. Public Provident Fund (PPF)
Tuesday, January 9, 2018, 7:13 PM
The Public Provident Fund (PPF) is backed by the Government of India and offers attractive interest. Currently, PPF offers 7.6% rate of interest for the Quarter (January to March, 2018). PPF enjoys the EEE status. The money invested in PPF will be tax exempt up to Rs 1.5 Lakhs under Section 80C of Income Tax Act. The money accumulated and withdrawn at maturity, are also tax-free.
Public Provident Fund enjoys Exempt- Exempt- Exempt (EEE) tax status
Wednesday, November 29, 2017, 4:10 PM
Investment in PPF is tax deductible under section 80C, but the maximum cap is Rs.1,50,000 per year. The primary benefit of investment in PPF is Exempt- Exempt- Exempt status (EEE), investments, interest earned and withdrawal at maturity are not taxed. But the only disadvantage of PPF is that it is a 15 years investment and a partial withdrawal is only allowed after 7 years.
Low-risk, High-return Financial Instruments: #1 PPF
Monday, October 30, 2017, 11:21 AM
Public Provident Fund or PPF is the safest long-term investment option in India. The average 10-year return for PPF has been more than 8%. Also, the returns are totally tax-free. The only downside is that the money gets locked for 15 years. The upside to this downside is that you can truly explore the potential of compounding interest from this account.
Benefits of PPF: #5 Extendable tenure
Tuesday, July 11, 2017, 11:09 AM
An investor can choose to close the PPF account at the end of 15-years (on maturity) and withdraw the entire-amount, or he can choose to extend the account for 5-years and continue to get the same benefits. Such extension can be done for a period of 5-years at a time, and it can be done indefinitely. So one can continue the PPF account indefinitely.
Benefits of PPF: #3 Flexibility in deposit amount
Tuesday, July 11, 2017, 10:28 AM
PPF provides the widest flexibility in the amount that can be deposited in the account, from minimum amount of Rs.500 per annum to maximum amount of Rs 1 lakh per annum. Also, an investor can make up to 12 deposits in a year, in multiples of Rs 5. Due to the lower threshold limit, even a daily wage earner can open a PPF account.
Benefits of PPF: #1 Safety of capital
Tuesday, July 11, 2017, 10:06 AM
PPF is an instrument backed by the Government of India, so the safety of the capital amount is guaranteed. Since PPF has a lock-in period of 15 years, safety and security of investment is the biggest benefit that any long-term instrument can confer. This is also what makes PPF the most popular savings scheme among investors for building up their retirement kitty.
Ways to invest for children's future: #2 PPF
Wednesday, June 7, 2017, 1:50 PM
It is one of the favourite investment options of a lot of experts. The primary reason for recommending this is the impeccable EEE feature. Moreover, the tenure or maturity period of this product i.e. 15 years is so very apt in terms of investment for child’s education or marriage. Another feature of this product is the flexibility in terms of investment.
Reasons why PPF is better than bank deposit: #5 Service
Wednesday, May 17, 2017, 11:31 AM
If you want to build a retirement corpus with interest that is tax-free, PPF is not a bad proposition over the bank deposit. Service is also not an issue these days as banks help you to open a PPF. So, you do not have to run to the post office to open an account. Online transfers and payments are also possible with ease.
Why PPF is better than bank deposit: #4 Builds Retirement corpus
Wednesday, May 17, 2017, 11:27 AM
Due to its long tenure of 15-years, PPF helps you to build solid retirement corpus. The advantage of the lock-in for seven years is that it helps you to save money and you cannot withdraw easily, which is good in a way as it is a forced savings. Easy withdrawal in case of bank may never allow you to save adequately for the future.
Reasons why PPF is better than bank deposit: #3 Sec 80C Tax benefits
Wednesday, May 17, 2017, 11:22 AM
If you invest in Public Provident Fund, you get tax benefits under Sec 80C. Most of the bank deposits do not offer you this facility unless it is the tax saving deposits. The current maximum deduction available for PPF investments stands at Rs 150,000 per annum.
Reasons why PPF is better than bank deposit: #2 Taxation on interest
Wednesday, May 17, 2017, 11:12 AM
Bank deposits are fully taxable. The interest earned on them is added to the total income of a person for the purposes of paying tax. The interest earned on the PPF is tax-free. So, if you are in the highest tax bracket, you need to reduce 30% of your returns from bank deposits.
Reasons why PPF is better than bank deposit: #1 Interest rates
Wednesday, May 17, 2017, 11:08 AM
The interest rate on the Public Provident Fund is always likely to be better than bank deposits, although there is a revision every quarter. Currently, PPF gives you an interest rate of 7.90%, while you get a mere 6.5% in public sector banks. Company Fixed Deposits offer higher interest rates but come with an element of risk attached to them.
How to check your PPF account balance?
Monday, May 15, 2017, 4:18 PM
If you have enabled net banking, then you can check your PPF balance in a few quick steps. Just login to the bank’s website using your credentials and under the PPF section click on balance information. It will list out all the details pertaining to deposits made, interests accrued, and the current PPF balance.
When is the best time to invest in PPF account?
Monday, May 15, 2017, 4:00 PM
The best time to invest is between the 1st and the 5th of any month, preferably April each year. Interest is calculated for the calendar month on the lowest balance at credit of your account, between the close of the 5th day and the end of the month, and is credited at the end of every year.
Can an NRI open a PPF account?
Monday, May 15, 2017, 3:48 PM
According to the current Public Provident Fund Scheme, NRIs are not permitted to open a PPF account. However, if a person had opened a PPF account when he was a resident and subsequently became an NRI, he may continue to subscribe to the PPF account till its maturity. However, he will not be eligible to extend or continue holding the account after its maturity.
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