Post Office PPF Scheme:- One of the few organizations in our nation that reaches even the most remote areas is the Indian Postal System. This is a major factor in the organization’s leadership in service delivery. These services include banking, insurance, and little savings plans like the Public Provident Fund (PPF). Historically, a Post Office PPF has been a risk-free and tax-saving investing option. It is also a safe deposit program with competitive interest rates.
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In India, PPF is a government-sponsored program. Because of this, the PPF interest rate is the same for all post offices and banks that provide this service. Every quarter, the Ministry of Finance releases the relevant interest rate. In post offices, the PPF interest rate is currently 7.10% p.a.The Ministry of Finance did not change the PPF interest rates from the previous quarter. Furthermore, March 31st is always the date on which interest is paid.
The post office PPF interest rate is based on the minimum amount in an investor’s account from the fifth to the last day of the month. Therefore, it is preferable to make PPF deposits by the fifth of that specific month, at the latest. By doing this, the investor will be able to earn interest on their deposit for the full month. Furthermore, the Income Tax Act of 1961 exempts from taxation the interest rate earned on a post office PPF account.
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The requirements to open a PPF account at a post office are as follows.
The list of documentation needed for a PPF account is as follows.
Currently, opening a Post Office PPF account is a paper-based process that requires you to physically visit a local post office. The essential procedures for opening a PPF account at the post office are as follows:
Users of the India Post Payment Bank (IPPB) app who have Post Office PPF accounts can make online deposits. To deposit your post office PPF account, follow these steps:
Following a successful payment transfer, the IPPB app will notify you.
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Some important guidelines for loans against post office PPF are as follows:
Even though a post office PPF account matures after 15 years, you can borrow against the account starting in the third year and continuing until the sixth year from the account opening date. Throughout a fiscal year, just one loan may be taken out. If the first loan is not paid back in full, no second loan will be granted.
After the second year, which is the year before the PPF loan application, up to 25% of the PPF account amount may be borrowed.
You can begin making annual partial withdrawals from the seventh year (the date of account inception) until the post office PPF account matures. A partial withdrawal can only be made up to the maximum amount, which is 50% of the PPF account balance at the end of the year immediately preceding the year of withdrawal, 4 years prior.
The following is a list of advantages of creating a public provident fund (PPF) account at the post office:
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Time Period | Interest Rate (per annum) |
Q3 FY 2023-24 | 7.1% |
Q2 FY 2023-24 | 7.1% |
Q1 FY 2023-24 | 7.1% |
Q4 FY 2022-23 | 7.1% |
Q3 FY 2022-23 | 7.1% |
Q2 FY 2022-23 | 7.1% |
Q1 FY 2022-23 | 7.1% |
Q4 FY 2021-22 | 7.1% |
Q3 FY 2021-22 | 7.1% |
Q2 FY 2021-22 | 7.1% |
Q1 FY 2021-22 | 7.1% |
Q4 FY 2020-21 | 7.1% |
Q3 FY 2020-21 | 7.1% |
Q2 FY 2020-21 | 7.1% |
Q1 FY 2020-21 | 7.1% |
Q4 FY 2019-20 | 7.9% |
Q3 FY 2019-20 | 7.9% |
Q2 FY 2019-20 | 7.9% |
Q1 FY 2019-20 | 8.0% |
Q4 FY 2018-19 | 8.0% |
Q3 FY 2018-19 | 8.0% |
Q2 FY 2018-19 | 7.6% |
Q1 FY 2018-19 | 7.6% |
Q4 FY 2017-18 | 7.6% |
Q3 FY 2017-18 | 7.8% |
Q2 FY 2017-18 | 7.8% |
Q1 FY 2017-18 | 7.9% |
Q. In 2024, will the PPF interest rate rise?
Ans- For the quarter ending in January–March 2024, the government has increased the interest rate on two modest savings plans by ten to twenty basis points. However, from April to June 2020, the PPF rate remained constant.
Q. Do PPFs last for ten years?
Ans- Long-Term Investment: PPF is a long-term investment plan that has a 15-year maturity time and an option to extend it in 5-year increments after that. Tax Benefits: Under Section 80C of the Income Tax Act of India, contributions made to a PPF account are deductible from taxes.
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