PPF account in Post office
Post office is a Government operated Postal system and it is operating in the name of Department of Post under the Ministry of Telecommunications. The Post offices in India are quite popular due to its age. i.e. from the year 1837, it rendered a Great service to the Indians by maintaining a good human relationships.
As Indians trusted this brand, People wanted to Save their Money in Post offices. In return Post offices offers various Deposit schemes with attractive interest rates.
Today in this Post, We are going to discuss about Post office Savings Scheme i.e. Public Provident Fund (PPF).
Also, We will completely discuss about
1. What is PPF savings scheme?
2. Who is eligible for this ppf scheme?
3. What is the minimum deposit and maximum amount can be deposited in this PPF account
4. How many years will the deposit mature?
Let’ get Started..!!
1. What is PPF Account in Post Office ?
PPF stands for “Public Provident Fund”. This Post office scheme launched by Government of India.
As you know how well Post office blended into Indians, from that Post office a Savings scheme has been introduced i.e. Public Provident Fund Account. In short, it will be called as “PPF Account”
It can be said that this scheme is one of the Favourite option for many investors because this PPF Scheme is a Government of India scheme. Therefore, it can be said as a Risk-free investment.
If you Invest money in either Shares or Mutual funds or in Real estate, then, risk is compulsory. Moreover, this PPF scheme is more suitable to those who don’t want to take risk in money matter, that too those depositors who have Long-term financial goals can try this scheme.
2. Who is Eligible for this Post office PPF Scheme?
This Post office Savings scheme can be opened by any Indian citizen who are aged 18+ years.
| Type of Person | Criteria |
| Resident Indians | Aged 18+ Years, can open on their name Singly |
| Minors / Unsound Mind | Aged below 18 Years, can open in the name of Guardian |
3. What is the Minimum & Maximum amount that can be deposited in PPF?
What is the Minimum limit in PPF?
In Post office PPF, you should mandatorily deposit a Minimum amount of Rs.500 rupees in a Single Financial Year. Here, the Financial Year means period which starts from 1st April and ends on 31st March.
What is the Maximum limit in PPF?
The Maximum amount you can deposit into PPF account in Post office is up to Rs.1,50,000 rupees in a Single Financial Year.
There is no limit on number of instillments you can deposit in your PPF. but all your PPF deposits should be made in multiples of Rs.50 only.
| Deposit Limit | Per Financial Year [ 1st Apr – 31st Mar ] |
| Minimum Deposit | Rs.500/- |
| Maximum Deposit | Rs.1,50,000/- |
4. In how many years the Deposited amount in Post office PPF Plan will be matured ?
PPF account in Post office will be matured after completion of 15 years from the date of account opening excluding the Financial year of Account opening.
For Example,
If you have opened the PPF account in the years 1st January 2024, you should not count the FY 2023-24 and you should count from the FY 2024-25 and will be matured in the FY 2038-39.
5. How much Interest will be paid on the deposited amount in PPF account?
Interest rate of PPF in Post office
The Interest in PPF account in Post office is decided by the Ministry of Finance on a Quarterly-basis.
From 1st Jan, 2024, the Post Office is offering 7.10% rate of interest per annum for the PPF account holders. The Post office will pay you Interest annually on a Compounding basis.
| Particualars | Description |
| Interest rate | @ 7.10% p.a. w.e.f. 01st Jan,2024 |
| Type of Interest | Compounding Interest |
6. What if I cannot deposit Annual Minimum deposit of Rs.250/- due to any reason?
If for any reason you are unable to deposit the Minimum amount of Rs.500 rupees in any Financial year, then, your PPF account in Post office will be discontinued.
Again, if you want to continue your old PPF account, then in whichever the financial year you missed the payment, in that financial year you should make a Minimum deposit of Rs.500 rupees along with Rs.50 rupee as a Default fees.
In case if you have not deposited the Minimum amount from multiple Financial years, then, again you can continue your PPF account in Post office by paying for all the years.
For Example, If Mr.Rahul have not deposited a Minimum PPF deposit for a Single financial year due to loss of his job at HSBC, Visakhapatnam. He has not deposited the minimum amount of Rs.500/- in that Financial year.
But later on after one year, to settle his position he joined as a Swiggy Deliver boy which offers Rs.45/- per delivery.
To have somethings in Savings, he wants to continue his PPF account in Post office.
Then, he should deposit Minimum amount of Rs.500 + Default fees of Rs.50 and can continue his PPF account.
Also Read: 10 Things to know about RD in Post office
7. I’m depositing in PPF regularly. Can I Withdraw if I need Money Urgently?
When the PPF account holders needs money at any time, then, they cannot Withdraw it within 1-2 years of starting their PPF account.
If you want to withdraw for any purpose, then you should wait for 5 Years excluding the Account opening year. A PPF subscriber can Withdraw once during a Financial year but not eligible to make multiple withdrawals for any reason.
For Example,
It means if a PPF account holder opens his PPF account in Post office in the FY 2015-16, then by excluding the FY 2015-16, the subscriber can Withdraw money after 5 Years. i.e. in FY 2021-22 or after that year can withdraw PPF money.
Example
2015-16 – PPF Start date (No)
2016-17 – 1st year – Cannot Withdraw
2017-18 – 2nd year – Cannot Withdraw
2018-19 – 3rd year – Cannot Withdraw
2019-20 – 4th year – Cannot Withdraw
2020-21 – 5th year – Cannot Withdraw
2021-22 – 6th year – Can Withdraw
8. Can I Withdraw the 100% amount ?
A PPF Subscriber cannot withdraw Full amount available in their PPF account in Post office after 5 years. But they can make partial withdrawals.
How much partial withdrawal is allowed ?
50% of Partial Withdrawal of PPF account in Post office balance only allowed.
If you are in Current FY 2024-25, if you want to make a partial withdrawal from PPF account in Post office this year, then, you should consider 2 PPF Account balances.
1. End of the Preceding year balance
i.e. For the FY 2024-25, the preceding year is FY 2023-24 i.e. Available balance on 31.03.2024
[or]
2. At the end of 4th preceding year balance which ever is lower.
Then, Post office will compare these Two PPF account balances and it allows you to Withdraw 50% of PPF account balance.
9. Can I close the PPF Account before Maturity time [15 Years] ?
If you want to close the PPF Account prematurely, then, you have to wait till the completion of 5 years from the year of opening the PPF account in Post office. i.e. Pre-Mature Closure
There are 5 conditions in which the account holder will be allowed to withdraw PPF money from Post office.
1. When PPF Account holder, Spouse or Dependent children has any Life threatening diseases.
2. For PPF account holder or for dependent child higher education purpose.
3. Even if the PPF account holder changes his residential status from Resident to NRI.
In any of these cases, the PPF Account holder should submit their Withdraw PPF balance by providing a PPF Withdrawal form, Passbook along with Proper proof of documents.
Charges:
Pre-Mature Closure of PPF account in Post office is not Free. When you opt for Pre-Mature Closure, you will be charged with Pre mature closure interest @1% will be charged.
10. What are the Tax benefits of opening PPF account in Post office?
If you make any deposits in PPF account during the Financial Year, then, you can claim deduction up to Rs 1,50,000 rupees Under Section 80C of the Income Tax Act, 1961.
If you have a claim amount of less than Rs 1.5 lakhs U/s 80C, then, you can happily consider this option.
Frequently Asked Questions
1. How much will I get after 15 years in PPF?
For Example,
If you deposit Rs.10,000 per month for 15 years, you will get Rs.32.54 Lakhs at the end of 15 Years. If you deposit Rs.1,50,000 every year for 15 years, you will get Rs.40.68 Lakhs at the end of 15 Years.
2. What are the rules for PPF in post office?
1. You must be an Indian Citizen
2. Minimum Deposit Limit – Rs.500 per Financial Year
3. Maximum Deposit Limit – Rs.1,50,000 per Financial Year
4. Maturity Period – 15 Years
5. Withdraw rules – Can withdraw only after 5 years of account opening
6. Tax deduction – Eligible U/s 80C of Income Tax upto Rs.1,50,000
3. What is the Minimum limit in PPF?
In Post office Public Provident Fund (PPF), you should mandatorily deposit a Minimum amount of Rs.500 rupees in a Single Financial Year. Here, the Financial Year means period which starts from 1st April and ends on 31st March.
4. What is the Maximum limit in PPF?
The Maximum amount you can deposit into Post office Public Provident Fund (PPF) plan is up to Rs.1,50,000 rupees in a Single Financial Year.
There is no limit on number of instillments you can deposit in your PPF. but all your PPF deposits should be made in multiples of Rs.50 only.
5. Can we have 2 PPF accounts?
No. You cannot open 2 Public Provident Fund (PPF) accounts in different banks. A family can have each different PPF account but one cannot hold more than one.
6. Can I open a new PPF account after closing one?
Yes. In case, if your existing Public Provident Fund (PPF) account is closed, again you can open another account with a maturity period of 15 years.
7. Can I open a PPF account in another bank?
No. Individuals cannot open more than one PPF account in different banks.
8. Can I close a PPF account and open another?
You can open existing Public Provident Fund (PPF) account and can create another. But at a time one cannot have two PPF accounts.
9. Is there any Maximum monthly deposit limit in PPF account ?
The Maximum amount you can deposit into Post office PPF plan per Financial year is up to Rs.1,50,000 rupee. It does not mean that you should deposit Rs.12,500/- per month. You can deposit a month Rs.50,000 and in another month you can deposit Rs.1,00,000/-. The Maximum limit of Rs.1,50,000/- is the limit for a Financial Year and with no monthly limits.
10. How many times i can deposit in PPF in a month ?
You can deposit money in PPF account in any number of times. There is a upper limit of Rs.1,50,000 rupees per financial year but there is no upper limit on number of transactions in PPF account.
11. PPF Tax exemption limit
All your PPF Deposits up to Rs.1,50,000/- per Financial year will qualify for Deduction u/s 80C of the Income Tax Act,1961
12. When Loan on PPF account balance is not allowed
In case the PPF subscriber discontinued his account, then the subscriber is not eligible for Loan facility.
13. What happens if PPF account holder dies before maturity ?
In case the Public Provident Fund (PPF) account holder dies, the PPF account will be closed. The Nominees or Legal heirs are not allowed to make any furhtur deposits in such PPF account. The balance available in PPF account will be transferred to the Nominees or Legal heirs.
14. How to open PPF account in post office?
1. Login to Your Bank Account
2. Select “Open a PPF Account”
3. For Self, Click on “Self Account” option
4. For Minor, Click on “Minor Account” option
5. Fill the relevant “Application form”
6. Enter the “Amount” you want to Deposit.
7. Submit application
8. Enter “OTP”
9. Your PPF account will be Successfully created instantly.
Thanks for your time 🙂
