PPF Account- How to Activate a Dormant PPF Account?
The Public Provident Fund ( PPF) is a traditional method of saving that is especially popular among the salaried class.
The PPF scheme is extremely beneficial to the general public.
It currently pays 7 .1 % per year in interest, which is significantly higher than fixed deposits at banks.
PPF pays a higher interest rate than 5 year FD, National Saving Certificate, and Time Deposit Scheme.
In such a case, investing in it allows you to save taxes while also earning higher returns.
The Public Provident Fund ( PPF) account is a popular long-term investment option for people seeking low risk, high returns, and tax advantages.
PPFs are used by investors to build a retirement corpus by putting money aside on a regular.
highlight: The Public Provident Fund basis over long periods of time ( PPF has a 15- year maturity, and the facility to extend the tenure).
A PPF is 15 years. Investors who wish to continue their PPF investment can do so for another five years.
- Individuals can begin contributing to the PPF scheme with a minimum investment of Rs 500 and a maximum investment of Rs 1,50,000 per fiscal year.
- Investments in the Public Provident Fund can be made in either a lump sum or in instalments.
You must pay at least once per year or in monthly instalments.
How to reactivate you PPF account?
- The account holder must make a written request to the bank or post office branch where the account is located to have an inactive PPF account revived.
The investor must deposit a minimum of Rs 500 for each fiscal year during which the account was inactive.
- To reactivate the account, the bank or post office charges a penalty of Rs 50 for each fiscal year the account was inactive.
The application cannot be revived if the deposit period ( 15 years) has expired.
By Ajeeta Bhatia Goodreturns source: goodreturns.in Dailyhunt