Quick Answer: How Can I Close My Second PPF Account?

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 PPF a good investment?

Tax Benefit Investment in PPF is tax free up to a limit of Rs 1,50,000 under Section 80C of the Income Tax Act, 1961, for each financial year. The interest on the PPF is also tax exempt but must be declared in the income tax return filed each year. The PPF corpus amount upon maturity is also exempt from tax.

What happens if PPF is not paid?

Penalty for not depositing minimum amount In a PPF, if you do not invest a minimum amount of Rs 500 in a single financial year, your account will become inactive. You can revive the account by paying a penalty of Rs 50 (for every financial year your account has been inactive) and minimum deposit amount of Rs 500.

Is PPF risk free?

The capital in a PPF account is completely protected as the scheme is backed by the Government of India, making it fully risk-free with guaranteed returns. The PPF account is however not inflation protected, which means whenever inflation is above the latest guaranteed interest rate, the deposit earns no real returns.

Can I have 2 PPF accounts?

The PPF rules allow the same individual to open another account in the name of a minor but it does not allow to hold more than one PPF account in one’s own name. While only one PPF account is allowed to be opened in one’s name, there could be a possibility that one ends up holding multiple PPF accounts.

How can I close my PPF account?

You can close your PPF account and withdraw your funds at the end of the 15th year. You will have to submit Form C to the post office or bank, where you have your PPF account, to terminate it.

Can I withdraw my PPF after 2 years?

You can withdraw from the PPF account after it matures 15 years from account opening. You can also make partial withdrawals, after the end of 6th financial year from account opening. Finally, you can go for premature closure after 5 financial years, on specific medical and educational grounds.

Can I close PPF account after 7 years?

You can withdraw from your PPF starting from the seventh year. So, if you go back to our above-mentioned example, for an account that was opened in 2014-15, the withdrawal facility will start from the April 1, 2020. There are limits on the amount of money that you can withdraw from the account.

Which is better PPF or 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.

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….PPF Interest Rate in All Banks 2020.PPF AccountDetailsTax on PPF interestNil, tax exempted3 more rows

Can I invest in PPF monthly?

You can only invest a maximum of Rs 1.5 lakh in PPF in a financial year, as per current income tax laws. You can make the investment either as a single lump sum or in a maximum of 12 monthly contributions.