Many people have doubts regarding PPF investment because there are many points which one has to keep in mind while making PPF investments. Given below are some of the most common questions or doubts which people have regarding public provident fund –
PPF or FD
The answer to this question is public provident fund, because although the rate of interest on fixed deposit is 9.5 to 10 percent, while the rate of interest on public provident fund is 8.5 percent. But interest on PPF is tax free and therefore the real return on it is more as compared to fixed deposit and that is the reason why it is better than fixed deposit if you are analyzing both of them in terms of return.
Who can Open PPF
One can open only 1 account in his or her name and cannot open multiple accounts.
Where to Open PPF
It can be opened at selected nationalized bank branches and at all post offices across India.
Documents for PPF
This is another most common question which people have, well for opening a public provident fund account one needs following documents
- Identity Proof for which one can submit documents like Ration Card, Passport Copy or driving license.
- Address Proof for which one can submit documents like Ration Card, Electricity Bill or water bill.
- Two Passport Size Photographs
- Original documents as a proof
What is the PPF Limit
The amount which one can invest into PPF during a year is minimum 500 rupees and maximum is 100000 rupees.
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If a minor child’s PPF account matures before the child becomes major then in whose name will the proceeds be – minor’s or guardians?