Personal Finance
Anyone having Indian citizenship can open a Public Provident Fund (PPF) account. The account can also be opened in the name of a minor.
Updated : Jun 24, 2021, 09:49 PM IST | Edited by : Manisha Chauhan & Riddhima Kanetkar
Public Provident Fund (PPF) is one of the most popular saving schemes among Indian households. Since it is managed by the Central Government, the money in the PPF account and the returns it generates, are guaranteed. The maturity period of PPF is of 15 years.
Here are few things you need to know if you have also invested in PPF.
Conditions if you want to close the PPF account before maturity
On such premature closure, interest in the account shall be allowed at a rate which shall be lower by one percent than the rate at which interest has been credited in the account from time to time since the date of opening of the account, or the date of extension of the account, as the case may be.
Here's how to close the PPF account if the account holder dies
The nominee can withdraw the money if the account holder dies before the maturity of the PPF account. Also, the condition of completing 5 years of the account gets rejected in such a situation. It means the PPF account is closed after the death of the account holder. The money is given to the nominee or legal heir. The same account is not allowed to continue.
Who can open a PPF account?
Anyone having Indian citizenship can open an account. The account can also be opened in the name of a minor. It can be opened with a minimum initial deposit of Rs 500 and thereafter deposit of any sum in multiples of Rs 50 can be made.