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Things To Consider About Public Provident Fund

Provident Fund

If you are looking for pension funds that are 100% safe, with a high rate of interest and good customer service, then the Public Provident Fund (PPF) is for you. PPF is a savings plan that gives you a fixed interest rate on your deposit. Its rates are updated periodically to prevent them from being manipulated by market conditions. It is a good option for those whose eyes are on the long term. So read further to know more about PPF Calculator.

Below are some things that you should know about Public Provident Fund (PPF):

  • To avail of the benefits of the PPF, one has to open a Savings Bank to Account (SBA) with any branch of the  Bank. The SBA account is required to be in your name only and cannot be joint accounts with anyone else
  • The minimum amount for the notice period is three months for the initial three-year deposit & 1 year for subsequent deposits, and within this period, you can make partial withdrawals.
  • Post the stipulated time, PPF has a lock-in period of 15 years. The interest earned on it is tax-free. If you close the account before maturity, you’re penalized for it.
  • If you are an individual businessman or an agriculturist earning a profit, you can make an additional contribution of ₹1.
  • The maximum deposit you can make in your PPF is ₹1.
  • If you are an individual non-salaried, you can make a  PPF account in a financial year.
  • PPF is one of the most stable investments in the financial sector and has shown a better return on investments over long periods.

How did the PPF come into existence?

It was decided that an independent body could be set up to provide these benefits to employees. Therefore, a committee to propose a scheme for Provident Fund retirement is being implemented through Central Provident Fund Commissioner and State Provident Fund Commissioner.

PPF Account:

To open a PPF Account, you need to apply for one through the prescribed form of  Bank along with your Contributory Certificate (CC) as per the government guidelines. If your employer is a Scheduled Caste or Scheduled Tribe and you are below 60 years of age, you need only send in a provident fund certificate and CC.


If you want to avail of benefits through a PPF account, you must open a Savings Bank Account (SBA). You can get in touch with the branches of any branch of the State Bank of India in your area and request them to open an SBA for you. 


If you are looking for a little guidance on investing your money, the average person will understand, but luckily there are plenty of calculators out there to help. PPF is a perfect option for retirement planning. Once your account is opened, it will take effect immediately. However, if an unorganized sector employer employs you, you must have two certificates. 5paisa has a good PPF Calculator.

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Suza Anjleena

Suza Anjleena is a Blogger, Tech Geek, SEO Expert, and Designer. Loves to buy books online, read and write about Technology, Gadgets, Gaming, LifeStyle, Education, Business, and more category articles that are liked by most of her audience. You can contact me via Email to: Thanks

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