PPF Rules Update: If you also invest in small savings schemes like PPF, Sukanya Samriddhi Yojana or NPS etc., then it is important for you to be updated about the changes made by the government from time to time.
The interest rates on such savings schemes are reviewed by the government every quarter of the financial year. During the review in the last June quarter, no change was made by the government. This was worrying crores of investors.
You can start with a small amount Here you can start with less money and deposit up to 1.5 lakh rupees in a year. Here your money is completely safe. The government has kept the interest rate on PPF at 7.10 percent recently. Its rules have been changed in the last few years.
Money will be deposited only once every month
It is necessary to invest in PPF account in multiples of Rs 50. This amount should be at least Rs 500 or more annually. But in PPF account you can deposit up to 1.5 lakhs in the whole financial year. Only on this you get the benefit of tax exemption. Apart from this, you can deposit money in PPF account only once in a month.
Interest rate was cut
You can also take a loan against the balance in the PPF account. Recently, this interest rate has been reduced from 2 percent to 1 percent. After paying the principal amount of the loan, you will have to pay the interest in more than two installments. Interest is calculated on the 1st of every month.
Account will remain active even after 15 years
Even after investing for 15 years, if you are not interested in investing, then you can continue your PPF account without investment. It is not necessary to deposit money in this account after the completion of 15 years. You can withdraw money only once in a financial year by opting to extend the PPF account post maturity.
This form has to be filled to open an account
To open a PPF account, Form-1 has to be submitted instead of Form A. For extension of PPF account after 15 years (with deposit) one year before maturity, application has to be made in Form-4 instead of Form H.
How to get loan against PPF?
Loan is also available against PPF account. Its rule is that you can get a loan only 25 percent of the balance in your account before two years from the date of application. Understand in simple language, you applied for the loan on 31st March 2022. Two years before this (March 31, 2020), if there was 1 lakh rupees in the PPF account, then 25 percent i.e. 25 thousand loan can be got.
