PPF Interest Rate

PPF Interest Rates from 2017 to the current quarter

How is Interest on PPF Calculated?

The minimum balance in your account from the fifth to the last day of each month is used to calculate the interest on PPF. It, if someone wants to deposit a significant sum at any point during the year, they should do so by the fifth of that specific month, at the latest.

You will be able to do this to earn interest on the sum for the entire month.

How to Check the Current Balance of a PPF Account?

1. You contact your bank or post office branch to know the current status of your PPF account.
2. You can ask the bank to link your PPF account to your specific internet banking account if the bank offers online banking services. You can access your PPF account and carry out the fundamental tasks, such viewing or monitoring the PPF account status, when the accounts have been linked.
3. Additionally, he or she has the option to pay PPF debts online. 

Advantages of Having a Public Provident Fund (PPF)

Here are some of the main advantages of having a PPF Account for an Indian citizen:

1. If you make a deposit of up to Rs. 1 lakh per annum in their PPF account, the sum of money is deductible under Section 80C of the Income Tax Act. The contributions made to the PPF accounts of an assessee's spouse and/or children are also eligible for tax deduction under Section 80C.
2. The amount in a PPF account cannot be claimed to meet cases of debt and/or liability. The entire amount of money in a PPF account belongs to the account holder for life and is payable to the nominee(s) of the person after his/her death.
   

What Happens in the Event of the PPF Accountholder’s Death 

In the event that the PPF account holder passes away, the nominees need to have the PPF account transferred into their names. A nominee is not permitted to make any PPF account contributions. However, the account will keep earning interest after the PPF account holder’s demise if the money is not withdrawn. According to the nominees listed by the subscriber on the account opening form, the PPF account is transferred to them.  

The account will be transferred to the nominee in accordance with any particular shares specified by the account holder. The PPF funds will be held in trust by nominees for the deceased's legitimate heirs. 

Is Interest Paid on PPF Accounts after Maturity 

A PPF account comes with a minimum lock-in period of 15 years from the date of account opening. Account holders have two options when their PPF account matures after 15 years: 

1. Withdraw the entire PPF balance. 
2. Extend the PPF account for an additional five years. Thus, they will be able to keep making contributions and accumulating interest on their PPF account balance. However, the extension request must be submitted within a year of the PPF account's maturity. There is no maximum number of extensions allowed for PPF accounts; extensions are granted in blocks of five years. 

If no action is taken by the PPF account holder within one year of maturity, the account gets extended as default and begins to earn interest. Any additional PPF account contributions are not permitted in this case.  

PPF Interest for Minors 

Parents and legal guardians may open PPF accounts on behalf of their minor children. The maximum amount that can be contributed (to the combined accounts of the minor and the adult), however, is Rs.1.5 lakh per fiscal year.