PPF (Public Provident Fund) Features, Interest Rate, Loan Facility, Partial Withdrawal And More: 10 Things To Know
- The current interest rate on PPF accounts for the quarter ending March 31 is 7.6 per cent. (Also Read: Post Office Saving Schemes: 5 Key Questions Answered Here)
- The maturity period of PPF accounts is 15 years but the same can be extended within one year of maturity for further 5 years and so on, according to the website of India Post, indiapost.gov.in. (Also Read: Post Office Saving Schemes - Public Provident Fund Vs National Savings Certificates)
- Premature closure is not allowed before 15 years. (Also Read: Latest Interest Rates On Post Office Saving Schemes: PPF Vs NSC Vs Recurring Deposit)
- However, investors can make partial withdrawals from PPF accounts after the expiry of five years from the initial date of deposit. The amount that can be withdrawn is limited to 50 per cent of last year's balance. (Also Read: Want To Earn A Regular Monthly Income? 5 Investment Options For You | New To Investments? Five Things To Know To Avoid Taking A Wrong Call)
- Contributions in PPF up to Rs. 1.5 lakh in a financial year are eligible for tax deductions under Section 80C of the Income Tax Act. (Also Read: Post Office Savings Schemes That Offer Income Tax Benefits)
- Subscribers can also avail loans against PPF deposits. The loan must be repaid within 36 months and the rate of interest on the loan is 2 per cent higher than the prevailing PPF rate.
- If the PPF investor repays the first loan, another loan can be availed. This loan facility is available till the end of fifth financial year from the end of the financial year in which initial subscription was made.
- However, PPF subscribers can take loan only once within a year.
- PPF accounts require a minimum deposit of Rs 500 subject to a maximum of Rs 1,50,000 in a financial year.
- PPF laws allow premature closure of accounts only under specific conditions such as expenditure towards medical treatment. However, for premature closure, PPF accounts have to complete at least five financial years, as per current rules.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
