Public Provident Fund Account , every one once heard about the platform in financial segment, but unaware of the benefits, policy and withdrawal limits, period etc. In this article you will get the benefits of Public Provident Fund Account (PPF).
Benefits of Public Provident Fund
PPF account is a kind of saving money platform in which the account holder will get the interest rate declare by the Government of India. Public Provident Fund Account also holds some restrictions for the account holders.
- Public Provident Fund Account is opened for Individual, Joint account is not permitted.
- PPF account is opened in Banks, Post office with the maturity time period of 15 years and the tenure will be extended by the account holder with the multiple of 5 Years
- Any Transaction or withdrawal is allowed to the account holder is after 7th year of opening of PPF account.
- Interest earned on PPF account is exempted by Income Tax Department.
- Loan facility is also available for PPF account holder but after 3rd year of account opening.
- The interest charge on Loan amount is 2 % higher then the interest paid on amount on PPF.
- Deposit in PPF also provide benefits under section 80 C of Income tax act.
PPF Interest Rate History
This history of PPF interest rate in last 30 years has been as follows:
- Year 1986 to Jan-2000 – 12.0%
- Year Jan-2000 to Feb-2001 – 11.0%
- Year Mar-2001 to Feb-2002 – 9.5%
- Year Mar-2002 to Feb-2003 – 9.0%
- Year Mar-2003 to Nov-2011 – 8.0%
- Year Dec-2011 to Mar-2012 – 8.6%
- Year 2012-13 – 8.8%
- Year 2013-14 – 8.7%
- Year 2014-15 – 8.7%
- Year 2015-16 – 8.7%
- Year 2016-17 (1st April 2016 – 30th September 2016) – 8.1%
- Year 2016-17 (1st October 2016 – 31st March 2017) – 8.0%
- Year 2017-18 (1st April 2017 – 30th June 2017) – 7.9%
- Year 2017-18 (1st July 2017 – 31st Dec 2017) – 7.8%
- Year 2017-18 (Currently – 1st Jan 2018 onward) – 7.6%
The variation is due to Indian economical and Fiscal variation, in details we will discuss it further articles.
Form D need to be submitted for applying for Loan from PPF account & Form C need to be submitted for applying for partial withdraw.
Safety on Public Provident Fund Account
The money lying in Public Provident Fund Account is fully secure and as mentioned above the rates of interest is also declare by the Government of India. Public Provident Fund Account is just like EPFO account hold by Employee and the same interest rates are decided by Government.