Are Multiple PPF Accounts Permitted? familiarize yourself with the deposit limits and other important information.

These days, investing in the Public Provident Fund (PPF) is becoming more common. It provides alternatives for tax exemption as well as savings. Given that the government periodically changes the interest rate, PPF investments also provide a stable return. PPF may be an excellent alternative for you if you’re searching for a long-term investing strategy.

You should consider important factors including investment restrictions, tax advantages, the number of PPF accounts you may establish, interest rates, and others before making a decision.

Every quarter, the government determines the interest rate on PPF investments. The PPF interest rate is currently set at 7.1%.

Who is able to establish a PPF account?

Any Indian citizen may create a Public Provident Fund in his own name, which is one of the most well-liked modest savings and investment plans. Additionally, one of the parents may register a PPF account for a young kid at the same time.

Grandparents may also set up a PPF account for their grandkids in the event of their parents’ death.

How many PPF accounts can one individual establish at once?

The current regulations only allow one PPF account per individual. Each individual is only permitted to have one PPF account. However, it has been seen that investors register PPF accounts in the names of their wives and young children in a few uncommon circumstances.

PPF account lifetime and maximum investment

The PPF account is initially created for a minimum of 15 years, after which it may be extended in increments of 5 years. The maximum deposit you may make into a PPF account in a financial year is Rs 1,50,000. For the PPF account to remain active, investors must deposit a minimum of Rs. 500 per financial year.

The regulations provide that if the PPF account holder does not deposit the required amount, a penalty of Rs 50 would be assessed annually. Between the third and fifth years after the account is opened, you may apply for loans against your PPF contributions. After the seventh year, you can make partial withdrawals for unexpected expenses.