7 Any number of accounts can be opened in any post office subject to maximum

7 any number of accounts can be opened in any post

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7. Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. 8. Quarterly interest shall be payable on 1st working day of April, July, October and January. 9. After maturity, the account can be extended for further three years within one year of the maturity.
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Public Provident Fund RATE 8.0% p.a. compounded annually MATURITY 15 Years PREMATURE WITHDRAWAL Partial withdrawals can be made after expiry of 5 years full financial years from the end of the year in which your initial subscription was made. (9.) Complete withdrawal of funds can be made only at maturity. TAX BENEFITS (E-E-E) Rs 1,50,000 exempt under 80C. Interest is completely Tax Free. Withdrawals are exempt from wealth tax. MIN-MAX LIMIT MIN – Rs 100 for opening the account Rs 500 in a Financial Year in multiples of Rs 5 MAX – Rs 1,50,000 in a Financial Year LOAN FACILITY After expiry of one year from the end of the year in which the initial subscription was made but before expiry of five years from the end of the year in which the initial subscription was made. (10.) 1. Deposits can be made in lump-sum or in 12 instalments but not more than 2 per month. 2. Joint account cannot be opened. 3. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. Also, nominees cannot opt to continue the account in their names if the subscriber is no more. 4. Maturity period can be extended within one year of maturity for further 5 years and so on. 5. Interest is calculated on the lower of the balance held on the 5th of a month to the end of the month. So, it is advisable to invest on 1 st -5 th of the month. 6. No attachment under court decree order. 7. Non-resident Indians (NRIs) cannot open a PPF account. However, account-holders who leave the country and obtain non-resident status after having opened a PPF account can continue to maintain their accounts until it matures i.e. until the end of the account’s 15 years term. NRIs are restricted from extending account tenures at maturity. HUFs & Foreigners also cannot open a PPF account. 8. Money has to be deposited every year to keep a PPF account active. To reactivate the account, an account holder has to pay a penalty of Rs.50. The penalty applies for each year the account has been inactive. Loan and withdrawal facilities cannot be availed while a PPF account is inactive. Also, interest will not be earned during the year(s) the account is inactive. Once the account is revived, interest will be calculated on the balance held at time of revival. 9. Only one partial withdrawal will be allowed every financial year. No reason will be asked for such withdrawal. The amount that can be withdrawn is capped as the lower of:
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(i) 50% of the total balance at the end of the fourth year, counting back from the year of withdrawal OR (ii) 50% of the total balance at the end of the year before the year of withdrawal 10.(i) Loan Facility: The loan facility is available from third to sixth financial year of opening the account. The rate of interest on loans is 2% more than the interest offered on the deposits. The loan
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  • Spring '14
  • Saving Schemes India

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