Question: Can I Open PPF Account If I Have PF Account?

Can I continue PPF after 15 years?

PPF accounts mature in 15 years and they can be extended beyond 15 years in blocks of five years.

They can be be retained with or without making further contributions.

The corpus will earn continue to earn interest till the account is closed.

Otherwise, fresh deposits into PPF account will not earn any interest..

What happens if a PPF account holder dies?

In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid even before the completion of 15 years, to the nominee or legal heir of the deceased person. The nominee or the legal heir is not allowed to continue the PPF account by making fresh contributions to it.

What happens to PPF account after 15 years?

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. … PPF accounts have a maturity period of 15 years and they can be extended.

What is the minimum lock in period for PPF account?

15 yearsA PPF account comes with a specified lock-in period of 15 years. However, you should keep in mind that in case of PPF, the lock-in period in not calculated from the date of opening the account. Instead, it’s calculated from the date of end of the financial year in which the first deposit was made in the account.

Can I transfer my PPF account to another bank?

You can invest in PPF through banks and the post office. … Both bank and post office PPF account holders can transfer their accounts from one bank to another, or from one post office branch to another or bank.

Which is best SIP or PPF?

The interest rate is decided by the government. SIP investment in mutual funds are ideal for all, short term, medium term and long term goals. They are ideal for wealth creation and fulfilment of goals. A PPF is ideally suitable for only long term investments of 15 years or more.

Is PF good investment?

EPF money is very good till the time you are employed. But the moment you are out of the job, all the interest income on the accumulated provident fund becomes taxable. It might be a good idea to take your money out of the provident fund because it is entirely fixed income.

How is PF calculated after retirement?

The sum of the employee as well as the employer contribution at the end of the year is added to the sum of the interest earned in each of the 12 months of the year. The result so obtained is the closing EPF balance at the end of the year. This amount becomes the opening balance for the 2nd year.

Which bank gives highest PPF interest?

SBI PPF AccountSBI PPF Account SBI PPF is a government-regulated PPF account scheme, which is distributed through SBI branches.SBI PPF deposits allow a maximum limit of ₹ 1.50 Lakh per annum, for a maximum tenure of 15 years. Currently, the interest rates offered by SBI on a PPF account is 7.10%.

What is the age limit for PPF account?

Ankur Choudhary, Co-founder& CIO, replies: There is no upper age limit for opening a PPF account. The lock-in, however, remains at 15 years irrespective of the age at which you open the account. On maturity, the account can be extended by blocks of 5 years any number of times.

Can husband and wife can open PPF account separately?

First of all, both husband and wife may open PPF accounts in their name only if both of them have their own sources of income. … He or she may open accounts for his/her minor children, but total investments in PPF against a single PAN cannot exceed the statutory limit, which is now Rs 1,50,000 in a financial year.

Can I have 2 PPF account?

“PPF rules are very clear that one can’t open more than one account if someone still opens a second account, he or she will not be eligible for any interest on invested amount,” said Rajan Pathak, Mumbai-based independent financial advisor. “The second account will have to be closed down.

Is PF better than PPF?

Contribution to Public Provident Fund Another major difference between EPF and PPF is the contribution. Individuals can make a maximum of 12 contributions in a year to a PPF account. Furthermore, a PPF subscriber needs to deposit a minimum of Rs. 500 per year and can deposit a maximum of Rs.

How much I will get in PPF after 15 years?

1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

What will happen if I deposit more than 1.5 lakh in PPF?

The PPF deposit up to 1.5 lakh is liable to the exemption and the amount to be received on maturity is also tax-free. Hence, PPF scheme undoubtedly is one of the most tax efficient and popular money-saving schemes in India.

Can I pay PPF for my wife?

You can open the PPF account in your wife’s name and invest Rs 1.5 lakh per annum on her behalf. However, the money given to your wife will be clubbed to your income. Getty Images The interest and maturity amount of PPF is exempted from Tax.

Which provident fund is best?

EPF, VPF and PPF: The BasicsEPF (Employee’s Provident Fund)VPF (Voluntary Provident Fund)Opening AccountEmployees in India (Salaried Individuals)Interest Rate8.75% p.a.8.75% p.a.Tax BenefitUp to Rs. 1 Lakh per year under Sec 80CPeriod of InvestmentUp to retirement or resignation, whichever is earlier4 more rows•Jun 10, 2020

What is current PPF interest rate?

PPF Interest Rates 2020Financial YearTime PeriodReturns (per annum)2020-2021April 2020 – June 20207.1%2019-2020January 2020 – March 20207.9%2019-2020October 2019 – December 20197.9%2019-2020July 2019 – September 20197.9%24 more rows

Can a person have both EPF and PPF accounts?

PF is applicable for salaried employees where a fixed amount is deducted from salary and taken as contribution towards PF. … If you already have a Provident fund account then there is no need to start a new investment account in PPF. However, one should open a PPF account and deposit a minimum sum of Rs.

Is it good to open PPF account?

Public Provident Fund Investors can save tax from Rs. 500 to a maximum Rs. 1,50,000 in one financial year, and can get facilities such as loan, withdrawal, and extension of account. PPF is a good alternative for self-employed people, or for those who are from unorganized sectors since EPF/GPF is not available for them.

Can I open PPF account without nominee?

You can open a PPF account in your own name or on behalf of a minor of whom you are the guardian. This is the combined limit of self and minor account. If the contribution exceeds the given limit of Rs 1.5 lakh, the additional money will not be eligible or any tax deduction or carry any interest.