Post Office (DOP) Public Provident Fund (PPF) - Short Notes
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Eligibility:
Can be opened by a single adult Indian resident or a guardian on behalf of a minor or a person of unsound mind. Only one account allowed per individual across the country, either in a Post Office or a bank.
Deposit:
Minimum deposit of Rs. 500 and a maximum deposit of Rs. 1.50 lakh per financial year (FY).
Maximum limit inclusive of deposits made in own account and on behalf of minors.
Deposits can be made in any number of installments in multiples of Rs. 50, up to Rs. 1.50 lakh.
Account can be opened via cash or cheque, with the date of realization of cheque being the date of opening.
Discontinuation:
Failure to deposit Rs. 500 in a FY leads to account discontinuation.
Loan/withdrawal facility not available on discontinued accounts.
Discontinued accounts can be revived by depositing minimum subscription + Rs. 50 default fee per defaulted year.
Interest:
Interest rate compounded yearly, credited to the account at the end of each FY.
Tax-free interest under Income Tax Act.
Loan:
Can be taken after one year from the end of the FY of initial subscription.
Available before five years from the end of the FY of initial subscription.
Withdrawal:
One withdrawal allowed per FY after five years excluding the year of account opening.
Amount of withdrawal up to 50% of balance at the end of 4th preceding year or preceding year, whichever is lower.
Maturity:
Account matures after 15 FYs excluding the FY of account opening.
Options on maturity: closure, retention without deposit, extension for further 5 years.
Extended accounts allow 1 withdrawal per FY, maximum 60% of balance at maturity.
For more detailed information, refer to the official India Post website: https://www.indiapost.gov.in/Financial/Pages/Content/Post-Office-Saving-Schemes.aspx
