Wondering how to open a PPF and how the thing works? Well, all of your confusion will go away by reading this article.
It is a scheme which is called the public provident fund, and it is by the central government. It is a scheme for saving which is long term and it is for the people to get security even after the retirement. So save a long time from now on a monthly basis and get the net amount right after retirement. It is going to give you various benefits; however, the money will be blocked for at least 15 years.
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It's simple. Got any nearest State bank? Go to it or head towards any national banks of your country. The steps ate natural and can be done in so little time that you are going to be amazed. Fill in the form that will be provided to you, with the form attach a photograph, write down the PAN no. That you have and that’s it, it's done! There will be a passbook handed over to you that is going to keep track of the PPF transactions.
Did you know you can open only one PPF account in your lifetime? So make full utilization of it!
Sadly, no. If you are not a resident of India, you cannot open an account under this PPF scheme. However, say you opened a PPF account when you were a resident of India. Then you went abroad and became an NRI within that 15 days period. Then you can keep on investing, but it is on a non-repatriable basis.
In case you are not aware of this, you must know that the best time for anyone to open a PPF account is in April within the 1st and 5th of that month. It is the best time as the rate of interest on it will be calculated between the 5th day and the very end of the month.
If you have completed 5 years after the subscription date, you can withdraw a certain amount of money which should not exceed 50% of the balance of the previous year. Also another thing you must keep in mind that the withdrawal from PPF can only be made once every year so decide carefully before you choose to withdraw money from it.
Thus these are the 5 essential facts which everyone should know before they choose to invest in public provident funds. Make monthly investments and decide to lead a tension free life after your retirement. These funds will help you live in peace without worrying about your future or the future of your children even after your departure. So invest in PPF and stay tension free.
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