Home / Money / Personal Finance /  Public Provident Fund: Key things to know while opening a PPF account

Public Provident Fund or PPF is one of the small saving schemes that ensure substantial risk-free return. Most importantly, the risk-free return is income tax exempted. In fact, a PPF account holder can claim income tax exemption under Section 80C on one's investment up to 1.5 lakh in a particular financial year. However, it is interesting to know that the minimum amount required to open a PPF account is just 100. But, to keep one's PPF account active, one needs to deposit at least 500 in one financial year. The PPF account holder is also advised to know that he or she can make a maximum of 12 deposits in one financial year.

Elaborating upon the minimum amount required for opening a PPF account and the minim deposit required to keep one's PPF account active SEBI registered tax and investment expert Jitendra Solanki said, "For opening a PPF account one needs just 100 — the minimum amount required for opening a PPF account. However, this minimum amount required for opening a PPF account won't be enough to keep one's PPF account active. To keep one's amount active, one needs to deposit minimum 500 in one's PPF account in one financial year. So, after opening the PPF account, one need to make sure that its minimum PPF balance on 31st March of that financial year is 500."

On how many deposits in one financial year Amit Gupta, MD at SAG Infotech said, "One needs to note that one can do maximum 12 deposits in one's PPF account. So, when one opens a PPF account, he or she needs to make sure that it would do a minimum of this much amount in one's PPF account throughout the year so that he or she can maximise one's PPF deposit limit." The Managing Director of the SEBI registered firm said that the best way is to make regular monthly deposit in one's PPF account.

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