- How to earn higher interest: The interest on balance in your PPF account is compounded annually and is credited at the end of the year. But the point to remember is that the interest calculation is done every month: the interest is calculated on lowest balances in account between 5th and last day of the month. So if you don't deposit on/before the 5th of a month, you don't earn interest for that month.
- How to invest online: Some banks offer the facility of transferring amount to your PPF account from your savings account. You also have the benefit of accessing your PPF account online. You can also opt for the facility of automatically crediting your PPF account on periodical basis through internet banking. But remember to transfer fund by 5th of the month to earn higher interest.
- How to extend PPF account: A Public Provident Fund (PPF) account gets matured after the completion of 15 years from the end of the year in which the account was opened. Premature closure of the account is not allowed. You can extend the tenure of a PPF investment for a block period of 5 years beyond the maturity period by submitting a form within one year from the date of maturity.
- Transferability: Subscribers can transfer their PPF account from one authorised bank or Post Office to another. In such a case, the PPF account will be considered as a continuing account. The customer has to approach the bank or the Post office where his/her current PPF account is held and has to submit an application for transfer of the account to another branch.
- What if I am an NRI or become an NRI: A non-resident Indian (NRI) cannot open an account under the PPF scheme. However, if a resident who subsequently becomes an NRI during the tenure of the scheme can continue with that account till maturity but cannot extend the account.
- PPF account in name of minor: Only one PPF account can be maintained by an individual. But he/she can also open in the name of a minor of whom he/she is the guardian. But the total contribution to your and your child's account cannot exceed Rs 1 lakh a year, which is the maximum limit for ordinary PPF accounts.
- Free from court attachment. The balance in the PPF account cannot be attached by any order or decree of court in respect of any debt or liability incurred by the subscriber.
- Withdrawal: A depositor can make partial withdrawals once every year from his PPF account from sixth financial year onwards. The maximum amount of withdrawal is restricted to 50 per cent of the balance at the end of the fourth year immediately preceding the year of withdrawal or the year immediately preceding the year of withdrawal, whichever is lower. For example, if the account was opened in 2003-04 and first withdrawal was made during 2009-10, the amount of withdrawal will be limited to 50 per cent of the balance as on 31.03.2006 or 31.03.2009 whichever is lower, less the amount of loan which remains to be re-paid. The amount of withdrawal is not repayable. Withdrawal during extended period: One partial withdrawal is permitted every year, subject to a maximum of 60 per cent of the amount standing at the beginning of the year.
- Loan: A subscriber can take a loan from the fund in case of need. Loan facility is available from third financial year up to the end of the fifth financial year. The maximum loan can be taken is up to 25 per cent of the balance at the end of the second year immediately preceding the year in which loan is taken. A second loan can be taken only when the first one is fully repaid. For example, if an account is opened in 2013-14, the first loan can be taken only in 2015-16 and the amount of loan will be restricted to 25 per cent of the balance in the account as on 31.3.2014.
- Loan repayment: The rate of interest charged on the loan would be 2 per cent more than the prevailing PPF interest rate then. The loan has to be repaid in 36 months. Higher interest is charged if the loan is not repaid within 36 months. (Disclaimer: "Investors are advised to make their own assessment before acting on the information.")
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