Common doubts related to PPF account


PPF is one of the most trusted saving instrument for working individuals. One can deposit up to Rs 150000 per year in the PPF account and the interest rates offered are higher that even fixed deposit interest rates. Read this post to know common doubts regarding PPF account and their solutions.

Here are some of the common doubts related to PPF account with their solutions:

1) Has government reduced the PPF interest rate? From when is it applicable?
1) Yes, Indian government has reduced the interest rate on PPF accounts in this budget and it is applicable from April 2016. The interest rate has been reduced from 8.7% to 8.1%. In fact, government has reduced the interest rates on almost all the saving instruments like Kisan Vikas Patra and NSC. Unlike the fixed deposit, there is no option to lock in particular interest rate. This means that now all your deposits in PPF account will get reduced interest rate.

2)How much can I deposit in the PPF account ? Can I deposit more than Rs 1.5 lakhs in PPF account of minor child ?
2)An investor is allowed to deposit total of Rs 1.5 lakh in PPF account. It includes the amount deposited in account of minor children. So as per the rules, you cannot deposit more than Rs 150000 in all the PPF accounts maintained by you.

3)How to deposit money in PPF account online ?
3)Many people think that the only option to deposit money in PPF account is by visiting the bank. But this is not true as most of the banks allow online transaction(only deposit) in PPF account as well. For instance here is the process to do online deposit in PPF account with SBI online banking.
a)Login on SBI internet banking with username and password.
b)Click on transfers and then on within own account. You will see screen as shown below.Enter the details and you can easily make the transfer.
PPF online desposit

4)How to get the PPF maturity amount in my bank account ?
4)This is quite important aspect as many people are not aware of the process. Most of the banks ask customers that they will be issued Demand draft for the maturity amount. But reality is that one can get the maturity credited directly in the saving account as well. Banks fool customers to get the DD charges but you can complain against it to banking authorities.

In case, you have further doubts, just post below and I will reply back.



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