Post Office 15-Year Public Provident Fund Account: Return, Tax Benefits, Other Details

India Post or Department of Posts, which runs the postal network of the country, offers a number of saving schemes with different interest rates. 15-year Public Provident Fund Account (PPF) is one among the nine small savings schemes offered by India Post, which has a network of more than 1.5 lakh post offices in the country. The post office 15-year Public Provident Fund Account offers an interest rate of 8 per cent per annum, which is compounded yearly, as mentioned on the official website of India Post, indiapost.gov.in.

Here are 10 things to know about post office 15-year Public Provident Fund Account: 

1. Account opening: An individual can open an account by cash or cheque but in case of cheque, the date of realisation of cheque in the government account shall be date of opening of account. However, one cannot open a joint account.

2. Minimum deposit amount: One can open an account with Rs 100 but needs to deposit a minimum of Rs 500 in a financial year.

3. Maximum deposit: The maximum amount one can deposit in a financial year should not exceed Rs 1,50,000. The deposits can be made in lump-sum or in 12 installments.

4. Nomination facility: Nomination facility is available at the time of opening post office's PPF account and also after the opening of account. Account can also be transferred from one post office to another.

5. Account for minors: A person can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts, according to India Post's website. 

6. Maturity period: The maturity period for PPF account is 15 years but it can be extended within one year of maturity for further 5 years and so on. However, maturity value can be retained without extension and without further deposits also.

7. Premature Closure: Premature closure of this account is not allowed before 15 years.

8. Income tax benefits: The deposits under 15-year PPF account qualify for deduction from income under the Section 80C of Income Tax Act. The interest earned is also tax-free.
 
9. Premature withdrawal: Withdrawal is permissible every year from 7th financial year from the year of opening account.
 
10. Additional benefits: Loan facility under post office PPF account is available from third financial year.