Thus, as inflation rises, real returns come down for post office term deposits. However, post office term deposits are totally risk-free as they are backed by the government. Bank FDs are insured only up to R1 lakh. If you are looking for a safe investment, bank FDs are suitable for you.
3. Comparison of the various Post office savings schemes
| Scheme | Interest Rate | Eligibility |
|---|
| 15 year Public Provident Fund Account (PPF) | 7.9 % p.a. (Compounded Annually) | Individual |
| National Savings Certificates (NSC) | 7.9 % p.a. (Compounded Annually) | Individual |
| Kisan Vikas Patra (KVP) | 7.6 % p.a. (Compounded Annually) | Individual (Adult) |
The interest on Post Office deposits was revised on 1 January 2020. For one-year time deposit, Post Office offers an interest rate of 6.9%. For time deposit for a tenure of 2 and 3 years, it offers an interest rate of 6.9%. For five-year time deposit account, Post Office offers an interest rate of 7.7%.
Specifically, you may consider any large PSU bank such as State Bank of India (SBI) & Punjab National Bank (PNB) or private bank such as HDFC Bank & ICICI Bank, for opening your PPF account. You may prefer these banks as they provide best class customer services and online banking facilities.
Yes, you can change the installment of PPF account each year. The minimum deposit that has to be made into the account each year to keep the account active is Rs. 500. Incase you are changing the PPF installment amount each year, then you will not be able to reap good benefits of PPF investments.
Both husband and wife can operate two separate PPF accounts. Either of the two can open another PPF account as a guardian of their minor children. However, only one of the spouses can open an account in the name of each child.
A PPF account can be opened in only designated bank branches of SBI and its subsidiaries, ICICI Bank, Axis Bank. Other banks where you can open a PPF account include: HDFC Bank, Central Bank of India, Bank of India (BOI), IDBI, Central Bank of India, Punjab National Bank, Indian Overseas Bank, and few others.
A PPF or Public Provident Fund is a tax-free savings scheme offered by the Government of India, wherein interest on the account is set for every quarter and is paid by the government.
The minor should submit his/her PAN card and Aadhaar card after completing 18 years so that she/he will be able to operate the account without any hiccups. A father can be the custodian of a child's account. Thus, the father can have his own ppf account and another account can be opened in the name of the child.
Number of accounts
Persons having a PPF account in the bank cannot open another account in the post office and vice-versa. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated.There are three methods of making an online deposits to your PPF account. Most banks and post offices would allow online deposit of money into PPF (Public Provident Fund) accounts held with them. Else, they have to use NEFT or ECS mandate to make deposits from savings account maintained with a different bank.
You cannot deposit more than Rs 1.5 lakh in your PPF account in a particular financial year. Even if you manage to deposit more than this limit, you will neither earn interest nor enjoy tax benefits on the excess funds. Hence, you cannot deposit Rs 3 lakh (Rs 1.5 + Rs 1.5) in a PPF account at given financial year.
An individual can open a PPF account a child's name in the capacity of guardian of the minor. But remember that a PPF account cannot be opened in joint names. When the minor turns 18, he/she can operate the account. Loans and other benefits like partial withdrawals from the minor's account are also allowed.
PFF account is life any other bank account and you need to have a PAN card for opening the PPF account. However in case you do not have your PAN card, you can give a declaration in Form No. 60 stating that he does not have the PAN card. This will help you open the PPF account.
The objective of KYC/AML/CFT guidelines is to prevent money laundering or terrorist financing activities by use of Post Office Savings Bank intentionally or unintentionally by criminal elements.
PPF is any day better than LIC policies. PPF are proper tax saving and investment instruments. LIC is a risk protection. Life Insurance Premium - primarily this is for Life Insurance but there are several money back and growth policies which pay good returns on investment.
Banks offer
PPF accounts at the rate fixed by Indian Government. Current
PPF interest rates offered by all banks is 7.90% as applicable from 1st January,
2020.
PPF Interest Rate in All Banks.
| PPF Account | Details |
|---|
| Current PPF interest rate | 7.90% w.e.f. 1st January, 2020 |
| Lock in period | 15 years |
| Minimum Account | Rs. 500 |
Public Provident Fund (PPF) is among the best retirement investment schemes available, offering tax-free benefits as well as a steady interest income. It is an ideal risk-free option with an initial lock-in period of 15 years where you can deposit up to Rs 1.5 lakh a year and earn an interest rate of 8% at present.
Most of the bank are doing good, however some are best as: SBI, PNB, BOB and ICICI which are giving you an option of easy account opening, online fund transfer to PPF account and easily view bank statement/passbook also providing Loan facility other benefits as PPF account holder.
Yes you can trust private banks(ICICI, HDFC or any other) which is operating PPF account. Don't worry about PPF money as Security is 100% as the money invested/goes only to the Government bonds and securities. Even though bank gets Insolvent Government will give your PPF money with Interest.
PPF Loan Calculation
10,000 per year in your PPF account for the past 3 years, in that case, your total investment for the period will be Rs. 30,000 while the PPF maturity amount for the period will be Rs. 34, 994. At the end of that year, you can withdraw a maximum of Rs.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.
You can check your PPF account balance offline using the following method:
- When you open a PPF account at the post office, you are given a PPF account passbook.
- The passbook contains details such as your PPF account number, transactions made in your account, the current balance in your PPF account, etc.
Usually opening an account will take minutes. Time will be required for form filling and documents verification after that account is opened with a initial deposit of say Rs 1,000/- which you have to deposit and will take time as per waiting time in the branch.
