How To Open and Apply for The Account

In order to open a PPF account, go to a branch of State Bank of India, even the subsidiary branches of SBI can open this account for you. You can find the list of these banks online, and visit the nationalized bank that is convenient for you. Even the head post office or some selected grade sub post offices also open these accounts. After filling up the form, which can be downloaded from the website of SBI, you attach a passport size photograph on the form and submit it with you Permanent Account Number. In case you don’t have a PAN card then you can get an attested copy of your voter’s ID card or ration card. After your account is opened you get a passbook.

Who Can Subscribe

Any individual in his name or on behalf of a minor can apply for a PPF account in addition to GPR account. The PPF account can be only opened in one name.

Subscription

15 Year Public Provident Fund Account needs a contribution of 16 in all. The annual subscription amount ranges from Rs. 500 to Rs. 70,000 which is payable either in a lump sum or in easy installments, but not exceeding 12 years.

Rate of Interest

Deposited money in the account earns 8% rate of interest per annum, which is annually compounded. Interest is paid on the lowest balance, which is between the 5^th day and the last day of the month.

Related Posts:

• Kisan Vikas Patra
• Post Office Monthly Income Account
• Post Office Time Deposit Account

How to Invest

• You can invest in any of the post offices or the sub post office either by cash or demand draft and even local cheques are accepted.
• A form has to be filled and then submitted with the amount
• The form will entitle you to withdraw a given amount monthly.

Who Can Invest

• Jointly, 2/3 adults
• Single adult
• A minor, but should be of 10 years of age and above
• A guardian on minor’s behalf

Rate of Interest and Maturity

• This is a 6 years account with 8% per annum payable on monthly basis.
• You can avail the facility of premature encashment only after one year.
• There is reinvestment facility available on account maturity.
• Free of cost, account can be transferred to any post office in India.
• Maturity bonus of 5% is given.
• Investment of a minor is not combined with the guardian.
• 1% is deducted from the account if you close it prematurely at any time after 3 year

Tax Benefits

• Deposits are exempted from the Wealth Tax
• There is no TDS
• Deposits are not eligible under section 80C for rebate.

Related Posts:

• 15-Year Public Provident Fund Account
• Post Office Time Deposit Account
• Post Office Interest Rates 2011

Who All Can Open Post Office Time Deposit Account

• Two adults can jointly open this account or a single adult can also do so
• Group Account by Gratuity fund, provident fund or superannuation fund
• In the official capacity a gazetted officer
• A cooperative bank/ society or a scheduled bank on behalf of the bank members
• By local body/ authority- Public account

Duration/ Tenure:

Time deposits can be made for the period of 1, 2,3, and 5 years.

Rate of Interest:

The interest rate depends on the tenure like the fixed deposits in the bank

Duration          Interest

• 1 year              6.25%
• 2 years             6.50%
• 3 years             7.25%
• 5 years             7.50%

Payouts

At the end of every year during the tenure interest is paid out at the time deposit. At the time of maturity principal is paid back

Facility to Nominate

Nomination facility is provided for the Post Office Time Deposit Account.

Where to Open an Account

This type of account can be opened in any of the sub post office or head post office.

Income Tax Benefits

Post Office Time Deposit Account like the bank’s FD’s can be opened for a period of 5 years and avail the benefits under sec 80C of the Income Tax Act.

Related Posts:

• 15-Year Public Provident Fund Account
• Post Office Monthly Income Account
• Post Office Interest Rates 2011