Question: What Happens To PPF Account After 15 Years?

Can I have 2 PPF accounts?

“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..

Which bank gives highest PPF interest rate?

Banks offer PPF accounts at the rate fixed by Indian Government. Current PPF interest rates offered by SBI, ICICI and all banks is 7.10% as applicable from 1st October, 2020.

What happens if PPF account is not extended?

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed.

What if I invest more than 1.5 lakhs 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 withdraw PPF after 5 years?

Can I withdraw PPF after five years? Yes, you can make partial withdrawals from your PPF account after five years. However, the maximum amount you can withdraw is capped at the lower of the two – 50% of the balance at the end of the fourth financial year or 50% of the balance at the end of the preceding year.

Can I invest more than 1.5 lakhs in VPF?

VPF is a great investment for tax saving because the returns are tax-free. … Contribution and tax saving investment limit: Senioz citizens can invest a maximum of Rs 15 lakh at any given point in time and claim deduction for investments up to Rs 1.5 lakh in a financial year.

What is new PPF rules?

2) Earlier, a maximum of 12 deposits were permitted in a period of one year into a PPF account. But now an account holder can make deposits in multiples of ₹50 any number of times in a financial year, with a maximum of a combined deposit of ₹1.5 lakh a year.

Can PPF be withdrawn?

As a rule, one can fully withdraw the PPF account balance only upon maturity i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.

Is PPF better than LIC?

The Public Provident Fund tends to provide a far superior rate of returns compared to an LIC policy like Jeevan Anand. What you should do is invest in the PPF and take a term policy online, which is cheaper and faster. In the term policy you do not get your money back, but, you are provided with solid insurance.

Can I close my PPF account before 15 years?

A PPF account can be closed prematurely before 15 years but only under specific circumstances. A PPF subscriber can prematurely close the scheme after completing five years for specific reasons such as higher education or expenditure towards medical treatment.

What is current PPF interest rate?

7.9%As of now the current PPF interest rate for July- September 2019 is 7.9% which is compounded annually. Before this, the interest rate was 8% for April-June 2019. The PPF interest rate is set every year by the ministry of finance and is paid each year on 31st March.

How much amount can be withdrawn from PPF after 15 years?

PPF WithdrawalWithdrawalTimeAmountAfter the account maturesAfter 15 years from account openingEntire corpusPartial withdrawal of fundsAfter 5 years from account opening50% of the total available balancePremature closing of an accountAfter 5 years from account openingEntire amount

Can we continue PPF account after 15 years?

Although PPF has a lock-in period of 15 years you have the option to take a loan against it or make partial withdrawals during its tenure. … You have the option of extending your PPF account after it matures. You can extend it indefinitely in a block of five years.

Can PPF be extended after 20 years?

PPF accounts mature in 15 years and they can be extended beyond 15 years in blocks of five years. … The government has allowed PPF subscribers to make deposits till 31st July in their accounts for FY 2019-20 subject to the condition of maximum deposit ceiling of ₹1.5 lakh.

Which is better NPS or PPF?

When compared between the National Pension System and Public Provident Fund, NPS is the higher return vehicle for a portion of what you invest goes towards equity trading which signifies higher returns. PPF on the other hand is all about fixed returns and there is no scope for added frills.