PPF Account: 5 key facts you must know

Zee Media Bureau

New Delhi: There are several saving schemes in the market which will take care of you in the long run. Public Provident Fund (PPF) is one such area which can prove to be a very good tool for investment.

Here are five facts you must know about PPF account so that you can make the most of this saving scheme.

1. PPF has very attractive interest rate of interest and it is fully exempted from Income Tax under section 80 C. Currently savings under PPF gives you 8.7 percent interest rate.
2. It is a good long term investments of 15 years. After the completion of 15 years, the investor has the option of withdrawing the fund or extend the lock-in period within one year of maturity for further 5 years and so on.
3. An individual can open account with Rs 100 but has to deposit minimum amount as low as Rs 500 and maximum Rs 1,50,000 in a financial year. Deposits can be done  in lump-sum or in maximum 12 transactions. However, joint account cannot be opened.
4. You can also avail loans between 3rd to 6th financial year. The maximum amount of withdrawal from PPF Account is 50 percent of the amount retained in the Account in the end of fourth year. This amount can be used for any emergency purpose or for higher studies.
5. Partial withdrawal facility is permissible every year from 7th financial year from the year of opening account.