Public Provident Fund

Ministry of finance introduced this policy for people of India in 1968. Public provident fund is tax free saving policy introduced by government that allows people to invest as per their budget. Even income from interest rate on PPF account is interest free. The fact that makes this one of the most flexible and reliable scheme is flexibility in income tax. This policy is especially dedicated to employees who can save amount through their investment for their post retirement life.

Public Provident Fund (PPF) Accounts

To earn return on their investment or deposit, first of all people need to invest certain amount for specific period of time. Current interest rate of PPF account is 8.1 revised in union budget of 2016-17 and replace previous interest rate of 8.7. As we know that policy is for small earning group people and that is the reason why plans are easily affordable and anyone can buy the plans.

Government is trying to make this policy much easier, robust, simple and interesting to attract maximum numbers of people towards this tax free investment policy. Operating PPF account is as simple as anyone can expect it to be. Government of India holds the right to decide the interest rate of this policy and may revised as per market demand and other crucial financial condition. To open account for PPF candidate must be Indian native and policy can be buy from any branch of post office or any nationalized and authorized bank. Request will be approve only if you will submit all document along with valid details. It is also important to know that limit of amount deposit may vary as per instruction of government of India. Calculation of interest rate is based on rate offered for single financial year.

PPF Scheme Key Features

PPF account holders will receive following facilities as per their investment plan
1. Individual account can be open, no facility for joint accounts.
2. Interest rates will change and this will be decided by the government, interest rate will be calculated on yearly basis.
3. Policy maturity tenure is 15 years, if investors wants to continue then policy can be extended for next 5 years more.
4. Policy holders will get exemptions in wealth tax and income tax under IT Act 80C.
5. Account opening amount is INR 100.
6. Criteria for minimum annual deposit are INR 500 and maximum deposit amount is 1.5 lakhs.
7. Various payment modes accepted and facility pay premiums in installment are also available.
8. Facility to add nominee before or after opening the account.
9. One to other bank or post office transaction is allowed but at the same time one to other person is not allowed.
10. Regular premium payment is mandatory otherwise account will be suspended.
11. As per users request account validity can be extended for next five years.
12. In case of any emergency amount can be withdrawn after 7 years.
13. Loan facility is also available for PPF account holders.

Investing Benefits in PPF

1.Easily accessible and easy to handle.
2. Long term investment facility along with security.
3. Beneficial for retirement plans and other emergency benefits.
4. Tax free benefits and returns.
5. PPF accounts are low risky and portable.
6. Best interest rates offer.

Rules and Regulation Regarding PPF Scheme

1. Foreigners cannot open a PPF account.
2. Only one PPF account can be opened per person. Resident Indians, 18 years or older, can open a Public Provident Fund Account.
3. HUFs cannot open a PPF account, effective 2005.
4. Non-resident Indians (NRIs) cannot open a PPF account.
5. An individual cannot open an account for an HUF (Hindu Undivided Family).

Important Document to Open Public Provident Fund Account

1.The account opening form, along with nomination forms if nominees are being named.
2. Rental/Lease Agreement, Bank Account Statements, Ration Cards, Signed Cheque, Passport, PAN Card, Aadhar Card, Driving License, Voter ID, Employers letter, Utility Bill.
3. Recent Photograph.
4. Apart from above describe records respective bank may ask for another documents as per their policy.

Open PPF Account

Anyone can open PPF account either from any branch of post office or any nationalize bank as per their facility and comfort. Apart from this online account opening facility is also available to make process much authentic and flexible. Criteria for minimum annual deposit are INR 500 and account opening deposit amount is INR 100 minimum.

Online Process

If someone wants to open his account online in that case, applicant need to visit official portal of respective bank and fill the all necessary information then follow the instruction to process your request further. Online account help to save travel cost, valuable time and effort that you can use for different task. If you are going to open online account that means you are agree with terms and condition of that bank. This kind of facility will help government to attract maximum investors easily that traditional medium.

At Bank or Post Office

Opening PF account at any bank or post office is traditional way to buy this facility. To complete the process obtains the application form, then fill form with valid information and then submit form along with all valid and required documents. Then deposit the account opening amount to complete the process. Users must know that post office and banks is mediator between government and public that works to promote government policy.

Authorize bank in India to Open PPF Account

Always open your PPF account at any authorizes post office or bank. As we know that this is government policy managed by the authorized agency that also avails the facility to transfer amount other to other bank branches quite easily.

Name of Authorize Bank for PPF Account

a. Axis Bank
b. ICICI Bank
c. Punjab National Bank
d. Union Bank of India
e. United Bank of India
f. Andhra Bank
g. Vijaya Bank
h. Punjab and Sind Bank
i. UCO Bank
j. State Bank of India
k. Allahabad Bank
l. Bank of Baroda
m. Bank of India
n. Bank of Maharashtra
o. Canara Bank
p. Central Bank of India
q. Corporation Bank
r. Dena Bank
s. IDBI Bank
t. Indian Overseas Bank
u. Oriental Bank of Commerce

Forms to Open PPF Account

1. To Open New PPF Account (Form A): To open new public provident account this for is used. Applicant need to provide information about particular name, mobile number, residential address, PAN card number, sign along with amount you want to deposit. If any agent is opening your account then agent name is necessary. If account is for any minor then name of any guardian along with relation with minor.
2. To Repay Amount or Loan Against PPF (Form B): if you want to invest amount, repay loan installments, policy premium or any other amount you want to deposit, then use this form. If you want to continue your account then regular deposit is quite important otherwise your account may be suspended. User may apply for three to six years of loan tenure. Deposit can be made through internet banking, cash, cheque and if you are paying premium through agent then never forget to specify the name and code of agent.
3. Partial Withdrawal Form (Form C): In case of any financial or critical emergency, withdrawal from PPF account is possible. Withdrawal of money will be possible after seven years of investment. User need to fill amount and account number and make sure that no other transaction was made in that particular year.
4. To Apply for Loan (Form D): if you are ppf account holder then you can apply for short tenure personal loan. You just need to fill the form along with your PPD account number.
5. To add Nominee in PPF Account (Form E): TO add nominee in your account use this form, fill all the details about nominee. This will allow them to inherit your amount after you. if you want to add multiple nominee then amount will be distributed among them. Never forget to give all valid details about your nominee.
6. To Change Nominee Information (Form F): If you want to replace current nominee due to any reason then enter the details about new nominee. This form can be used to add more than one nominee.
7. To Claim Funds in PPF Account (Form G): In case of sudden death or account holder inheritor or nominee may ask for claim settlement. During this process death certificate as proof is quite mandatory.
8. To Extend the Validity of Account Maturity (Form H): As we know that initial tenure decided by the government is 15 years, if someone want to extend this tenure then fill this form and submit it in respective post office or bank branch. Please do not forget to specify account opening date and account number.

Renewal or Extension of PPF Account

If account holder wish to extend the maturity tenure of PPF account then it is possible to extend the policy, if someone opt this policy then will definitely receive maximum benefits.
a. After maturity of account, if investor made no fresh investment even then he will receive interest rate.
b. If account holder continues paying premiums after maturity tenure then he will receive benefits of interest rate calculated on basis of overall amount. After extension of maturity tenure account holder can withdraw up to 60% of deposit amount.

PPF Scheme Tax Advantage

1. Amounts deposited in a spouses or childs PPF account also qualify for tax breaks.
2. Amounts withdrawn from the account are exempt from wealth tax.
3. Interest earned on these deposits is not taxable.
4. Deposits made under this scheme can be claimed as deductions under section 80C.

Public Provident Fund (PPF) Calculator

This online tool will help individuals to calculate their current amount, monthly installment amount, maturity amount and other necessary calculation quite easily. If you are going to invest in PPF policy then this is quite beneficial for you. Other facts that will important are specified below:
1. It helps ascertain the investment required for certain specific returns and other benefits.
2. There are also conditions to borrowing and withdrawing amount from a PPF account. PPF calculators help account holders to set their target to how much they can borrow or withdraw based on these conditions.
3. It helps account holders or potential investors calculate interest on PPF deposits and maturity amounts.
4. When PPF accounts uses as an investment can be monitored and compared with other instruments like other FDs, RDs, post office saving schemes, Mutual Funds etc. to check returns and make informed investment choices.
5. It helps users to ensure that how much they stand to gain if they choose to extend their maturity tenure; under both circumstances i.e. with or without additional deposits.
6. In the case of repayments and withdrawals, PPF loans, loan, the PPF deposit calculator is a useful tool to perform quick calculations to arrive at the latest account balances after managing for all debits.
7. Given that investments can be made either in installments or in a lump sum, calculations can get complicated and confusing when the latter is chosen.
8. It delivers results in a user-friendly manner often in the form of charts or tables which clearly indicates how much has credited in the account as principal, how much has accrued as interest, and how much to expect on maturity.
9. Considering interest rates are subject to change every year, balances will have to be carefully calculated to account for rise or falling rates.