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Public Provident Fund (PPF)- Features, Eligibility and Benefits

Nowadays, money has become a very important thing in everyone’s life. Without money life is impossible. Saving money will help us in our urgent needs. In addition, we should save money for our future. Keeping this thing in mind, the Government has been constantly introducing different types of benefits and schemes. One such benefit is the Public Provident Fund (PPF).

Public Provident Fund (PPF) Scheme

The Public Provident Fund Scheme is a tax-free scheme floated under the PPF Act 1968 by the Central Government. This scheme was first introduced by the Ministry of Finance in the year 1968. It is one of the safest investments product launched by the Indian Government. The deposits made towards the PPF Account can be claimed as the tax deductions and it also gives the tax benefits under the section of 80 (c) of the Income Tax Act. The main objective of the Public Provident Fund Scheme is to encourage savings among the Indians and encourage them to create a retirement corpus.



 List of the Public Provident Fund (PPF) Forms

In Public Provident Fund Scheme, the Government has introduced different types of forms are required on the basis of the activity that you perform in your PPF Account. Below are the details of the types of forms used:

  1. Form A: This form is mainly issued to those who want to open a new PPF Account. The form consists of the key particulars of the account holder such as the name, address, PAN Card and signature. The amount that you want to deposit should also be mentioned in the form. Amounts can be deposited via cash, cheque, online or Demand Draft. This will be specified in the pay-slip. If in case you have opened the account but the deposits are done by an agent then, the agent’s name and the code has to be entered in the form.
  2. Form B: This form is used to make deposits and repay loans against a PPF Account which means that Form B is used to deposit or pay money in the account. The deposits can be the investments, repayments for a loan taken against an account or payment of the penalties or to reactivate the account. Loans can be availed from 3 years to 6 years counted from the day of opening. Amounts can be deposited via cash, cheque, online or Demand Draft. This will be specified in the pay-slip. If in case you have opened the account but the deposits are done by an agent then, the agent’s name and the code has to be entered in the form.
  3. Form C: This form is used to take partial withdrawals from the PPF Account. You can withdraw a certain amount of money from the year 7 of opening the account. The applicant has to enter the account number and the amount you need to withdraw. A declaration is also taken stating that no amount was withdrawn in the same financial year.
  4. Form D: This form is used to request for loans against the PPF Account. The Scheme provides loan facility from the year 3 to 6 of an inactive account. The account holder has to specify the details such as the PPF Account number, the amount being borrowed and an undertaking that the amount will be repaid with an interest within 3 years as per the rules.
  5. Form E: This form is used to add a nominee to the PPF Account. The account holder should mention the name of the person along with their address and relation to the account holder. If you are entering more than one nominee then you also have to specify the percentage of the funds that can be claimed by each nominee. Minors cannot be made as Nominees.
  6. Form F: This form is used to cancel to alter the nominees for a particular PPF Account. The account holder has to specify when the nominee is cancelled/replaced/altered. The Nominees can be added or removed at any period of time during the PPF Tenure. The percentage allocated to each nominee can also be altered.
  7. Form G: This form is used to claim funds in the PPF Account by a Nominee/Legal Heir. This means that when the PPF Account holder dies, whom he/she had stated as the nominees or his/her legal heirs, they can claim the amount in his/her PPF Account. The Form G consists of the information such as name, an address of the Nominee holder. The form also asks for a Confirmation from the claimant that the death certificate of the account holder has been enclosed.
  8. Form H: Form H is used to extend the maturity period of the PPF Account. The standard maturity period of the PPF Account is 15 years after which the investor can withdraw funds freely. But however, if the investor wants to extend the term of the account beyond 15 years then he/she can further do so by submitting this form. This form will extend the term period up to 5 years. While submitting this form, the account number and the date of the account opening has to be specified.

Features of the Public Provident Fund

As we know that, the objective of the PPF Scheme is to encourage savings across all types of Income Class. It has minimum deposit amount making it more affordable and simple. The PPF Accounts can be opened at any nationalized and authorized banks/Post Offices. The PPF Accounts can also be opened in the Private Banks.

The Interest Rates are set and is announced by the Government of India. The interest can only be calculated for a financial year if the rate of interest is announced. The period from the 1st of April to 31st March is (Financial Year). This is considered to be the Deposit Year for the PPF Account. Like for an example, if an account is opened on November 2010-2011 then the Year 1 will be April 1st 2011-March 31st 2012.

The different features of the PPF Account are as follows:

  1. The PPF accounts can be opened with a minimum amount of Rs 100/- at any Post Office or any SBI Branch or any authorized offices like ICICI Bank, Union Bank of India. You can also open an online PPF account with ICICI Bank.
  2. The annual deposit amount in a Financial Year is Rs 500/- and the maximum is Rs 1, 50,000. The deposits in the PPF Account can be made either in one go or in installments. But you cannot deposit more than 12 times in a year.
  3. Maximum Tenure for the PPF Account is 15 years. If any case you want to extend your term period of the PPF account then you can extend the account validity up to 5 years.
  4. If you forget to contribute the minimum amount in any year, then your account will be deactivated. To re-activate it again you need to pay Rs 50/- as Penalty charge for each inactive year and along with that you also need to pay Rs 500/- for each inactive year’s contribution.
  5. The interest rates are announced by the Central Government. The interest rate is compounded yearly. The current interest rate of the PPF Account is 8.1% per annum.
  6. The Loan Facility is available from the 3rd financial year to 5th financial Year. The rate of interest charged on the loan on or after December 1st 2011, is 2% per annum.
  7. Withdrawals is allowed from the 7th Financial Year. You can withdraw only once in a year and that should not exceed 50% of the balance at the end of 4th Year or 50% at the end of the immediately preceding year, whichever is lower. Premature closure of the account is possible in case the death of the account holder.
  8. It allows cash, cheque, and Demand Draft and Internet Banking modes of the Deposit Modes.
  9. The Nominations are allowed only on or after the opening of the account.
  10. The funds cannot be transferred between the people but can be transferred between the bank branches or post offices for free.
  11. The PPF Accounts does not allows Joint Account Facility.

Benefits of Investing in PPF

The key advantages of investing in a PPF Account:

  1. The PPF account serves quite effective long-term investments. They offer a deposit period of 15 years and a lock-in period of 7 years.
  2. This scheme is quite beneficial after the retirement. As it provides long-term tenures, compounded and tax-free returns and capital protection make it perfect for building a retirement corpus.
  3. Provides tax-free returns and tax-deductible investments
  4. Since the scheme is backed by the Government, it is, therefore, has a high-security feature and low-risk of default.
  5. The PPF accounts are opened at Nationalized, public banks or Post Offices, and selected Private Banks. They have a wide reach across the country. These accounts can be opened online as well.
  6. The PPF accounts cannot be attached to the Court Order or laid claim to by creditors.

Interest Rates of the Public Provident Fund

The Reserve Bank of India specifies the rate of interest from time to time that is applicable to the PPF account. It is the Central Government who sets and announces the latest PPF Interest Rates. The current rate of Interest of the PPF for the year 2017-18 is 7.9%.

PPF Scheme Rules and Regulations

There are a number of rules and regulations governing the Public Provident Fund Scheme, 1968. The rules and the regulations include the eligibility, documentation, opening of a PPF Accounts including the loan facilities, closure, and extension of accounts. The key rules have been discussed below:

Eligibility Conditions: Who can open a PPF Account

There are a number of eligibility criteria’s for opening a PPF Account. The following are discussed below:

  • The PPF accounts should be opened as one account per person. The nationality of the individuals should be Indian. They should attain an age of 18 years. There is no upper-limit for opening this account.
  • Minors can also open the PPF accounts. Minors who are below the age of 18 years can also open the account. However, the maximum limit of Rs 1.5 lakhs per year applies to the deposits made minor and the major’s guardian’s account, collectively. Grandparents cannot open an account in the names of their minor Grandchildren.
  • The Non-Resident Indians (NRIs) are not eligible for opening a PPF account. But the account-holders who leave the country and obtain a non-resident status after opening the account can continue to maintain their accounts until it matures i.e. until the end of the accounts 15-year term. The NRIs are restricted to extend the account tenures at maturity.
  • The HUFs (Hindu Undivided Family) cannot open the accounts. This has been effective since 2005. The HUFs who have their accounts opened before 13th May 2005 can be continued till the maturity period. Further extensions are restricted. An individual cannot open an account for a HUF (Hindu Undivided Family).
  • The foreigners are also restricted from opening a PPF account.

Documents Required for Open a PPF account

The documents that are required to open a PPF account are the KYC documents. The KYC documents are discussed below:

  • Passport, PAN Card, Aadhaar card, Driving License, Voter’s ID, Employee’s Letter, Utility Bill, rental/ lease agreement, Bank account statements, Ration cards, Signed Cheque etc.
  • Latest Passport size photographs
  • The account opening application form, along with the nomination form-(if you want to add any nominees). This is completely optional.
  • Banks may ask you for some additional documents. In case if minors, carry the age-proof. The age-proof can be a birth certificate or school certificate.

Opening a PPF Account: Different Modes

The PPF accounts can be opened either by visiting a Post-Office or a Bank Branch or online via Net banking. An account can be opened with a minimum amount of Rs 100 but the total deposit for the year should be a minimum of Rs 500/-.

At a Post-Office or a Bank

The accounts can be opened by visiting the nearest Post-Office or bank branch. You can also open the account via online internet banking. The step by step procedure to open a PPF account is as follows:

  • To open a PPF account, you need to have a saving bank account in the designated branch of SBI or any other approved banks.
  • The following documents are required for the opening of the bank account:
  • Account opening form, which should be duly filled (this can be taken from the designated bank branch)
  • ID Proof- This can be Passport, Aadhaar card, PAN Card, Driving License as per the Bank’s KYC Norms)
  • Address Proof- Utility Bills
  • Two recent photographs
  • Al the documents should be self-attested

It is preferable to open a PPF account in the bank rather than the Post Offices because with banks, you can deposit the cash online as well as offline. This can be very helpful if you have relocated from the city of your home branch.

How to Open a PPF Account Online

The step-by-step procedure of opening a PPF account is as follows:

  • Firstly, you need to open a bank savings account.
  • Then you need to login to your saving bank account online panel and apply from there.
  • Fill in the required details in the application form and submit it.
  • Once the online form is submitted it must be printed, signed and deposited in the nearest bank branch.
  • Such online account is linked to your savings account and you can easily see your PPF balance online.

List of Banks Where PPF Account Can Be Opened

  1. State Bank of India
  2. State Bank of Travancore
  3. State Bank of Hyderabad
  4. State Bank of Mysore
  5. State Bank of Bikaner and Jaipur
  6. State Bank of Patiala
  7. Allahabad Bank
  8. Bank of Baroda
  9. Bank of India
  10. Bank of Maharashtra
  11. Canara Bank
  12. Central Bank of India
  13. Corporation Bank
  14. Dena Bank
  15. IDBI Bank
  16. Indian Overseas Bank
  17. Oriental Bank of Commerce
  18. Punjab National Bank
  19. Union Bank of India
  20. United Bank of India
  21. Andhra Bank
  22. Vijaya Bank
  23. Punjab and Sind Bank
  24. UCO Bank

Withdrawals and Closure of the PPF Account

The PPF accounts cannot be closed before the maturity period which means before the end of the year 15. If in case your account gets deactivated, the funds that are deposited cannot be withdrawn until the end of the 15 years. After the completion of 15 years, you can withdraw the entire amount along with the interest accrued.

However, the account holders are in need of funds, the scheme allows partial withdrawals from the year 7 which means on completing 6 years. The amount that can be withdrawn is capped at the lower of:

  • 50% of the total balance at the end of the fourth year, counting back from the year of withdrawal


  • 50% of the total balance at the end of the year before the year of the withdrawal. Withdrawals can be made only once in a Financial Year.

Extension and Renewal of the PPF Account

  • Although the accounts get matured at the end of the 15th financial year from the date the account is opened, the account holders can tend to choose to extend the term period of the maturity. The tenures can be extended in the blocks of 5 years with or without making any further investments.
  • If no fresh maturity is made after the Maturity: the account will continue to earn interest on the amount accrued until the end of the 15th year. In this case, the funds can be withdrawn once every financial year.
  • If fresh investments are made after maturity: The new deposits will be added to the balance that is held at the end of the 15th year and the interest will be calculated on the entire amount. However, the withdrawals will be restricted to a maximum of 60% of the amount held in the account at the start of each 5-year period of extension.

Public Provident Fund Calculator

A PPF calculator is an online official tool which is used to help in the planning of PPF investment schemes. This tool is provided for free. It is usually featured in the bank’s/ post office’s website or on a third party financial services and provider sites. It is mainly useful for those who are investing under the PPF Scheme.

Benefits of the Public Provident Calculator

  • It helps the account holder or the potential depositors to calculate interest on PPF deposits and maturity amounts. It provides the results accurate. The tool is user-friendly and costs no charge.
  • The results are displayed in the form of tables and charts which indicates how much has accrued in the account as principal, interest and expect on maturity.
  • The calculator guides the account holders of how much to invest or choose their extended maturity period under both the additional criteria’s – with or without additional deposits.
  • The PPF Calculator serves as a very handy tool in case of the Loans and Withdrawals, as it makes quick calculations to reach the latest account balances after accounting all the debts.
  • The PPF accounts as an investment can be tracked and compared with the other instruments like Post Office Savings Schemes, FDs, RDs, and Mutual Funds etc. to check the returns and perform different investment choices.
  • When the investments are made, they can be either in the lump-sum form or in instalments. The calculations for these can be very complex and confusing. And as we know, that the interest rates always change for every financial year. Therefore, the balances are needed to be calculated very carefully which the Deposit Calculators do it very well.
  • There are also the limitations to borrowing and withdrawing from a PPF account. The PPF calculators help the account holders to determine how much they can borrow or invest or withdraw based on these limitations.

Important Notes

  1. Under the Public Provident Fund, an individual can hold only one account.
  2. The branch charges a penalty of Rs 50/- if the account is inactive. You will have to deposit a minimum amount of Rs 500 every year the account is inactive as well as Rs 500 if you are activating the account.
  3. No interest is calculated for the year, the account is inactive. Once the account is revived, the interest will be calculated on the balance held on the revival.
  4. The maximum investment amount to deposit is Rs 1.5 Lakhs, it is applicable for all the age criteria.
  5. The extensions are made in the block of 5 years each.
  6. It is not mandatory to mention all the nominee’s name in the PPF account.
  7. No joint accounts are allowed in the PPF account.

SBI PPF Account – Features & Benefits

The State Bank of India is known as the most popular public sector bank of India. This bank is officially licensed by the Reserve Bank of India. The bank provides a wide number of the products and services for the benefit of the people. One such service is the Public Provident Fund or the PPF. The Public Provident Fund is one of the schemes that is introduced by the National Savings Organization in the year 1968. The aim of the organization via this scheme is to enhance the saving habit of the citizens. The PPF scheme of SBI offers a quite decent returns on the money and also an interest free-return amount. Since, SBI is known as one of the trusted banks of India therefore you can get an assurance of safety with the SBI PF Scheme.

Earlier, the PPF Schemes were available only through the Post Offices. But now, a number of banks have been associated with the PPF Scheme. The PPF account handling is much easier in the banks rather than the Post Offices. It is because the deposit of the cash can be done online.

Some Relevant Links
SBI Bank Saving Account Click Here
SBI Credit Cards Click Here
SBI Credit Card Customer Care Number Click Here
Check SBI Bank Account Balance Click Here
Link Aadhaar Card With SBI Bank Account Click Here
SBI Bank IFSC Code Click Here

How to Avail SBI PPF Scheme

To open a PPF account in the SBI Bank, you need to fill in the PPF Form and submit it along with the required mentioned documents. Not all the SBI Branches provides the account opening facility. Therefore you need to search for the nearest SBI Bank Branch that provides the account opening facility. Once the PPF PDF Form is dully filled and the relevant documents are submitted, then your PPF account is created by the bank. The account will keep all the information regarding the PPF transactions and much more.

Documents Required to Open a SBI PPF Account

The documents that are required for opening a SBI PPF Account are as follows:

  • Duly Filled PPF Account Form
  • Proof of Identity- Driving License, PAN Card, Passport and Voter ID.
  • Proof of Residence or Current Address Proof
  • Passport Size Photographs

The SBI mainly says to self-attest your document photocopies and carry the original documents for cross-verification during the account opening.

SBI PPF Account Opening Form

The SBI PPF Account Form is a very brief and simple form. It requires the customers to fill in some basic details like:

  • Name
  • Initial Amount of the Deposit
  • Signed Declaration of the PPF Account Opening
  • Details of all the SBI PPF Account held by the customer till date.
  • Signature of the customer to signify the compliance to all the regulations that drive the PPF Scheme.

SBI PPF Account Rules and Guidelines

There are a certain numbers of guidelines and rules to follow while opening a SBI PPF Account. These rules and regulations are made to make the customers aware of the various aspects related to the SBI PPF Account.

  • Duration of the SBI PPF Scheme: The SBI offers an initial duration of 15 years, after which the customers can request in extensions in blocks of 5 years. One or more such 5 year blocks can be requested by the customers.
  • Eligibility Criteria to Avail SBI PPF Scheme: To avail a SBI PPF Account, the individual should be an Indian and can open an account in the name of his/hers otherwise in the name of the minors.
  • Investment Limit of the SBI PPF Account: The minimum investment fee is Rs 500/- per annum and the maximum investment fee is Rs 1500/- per annum. If any amount is higher than Rs 1, 50,000/- then you cannot earn neither earn an interest nor any tax rebate and hence it should not be invested. The amount deposited in the PPF Account can neither be deposited via single payment or via twelve installments per year.

The Features and Benefits of SBI PPF Account

The SBI PPF Account provides a wide variety of features and benefits:

  • Nomination Facility

The SBI PPF Scheme offers a Nomination Facility to the customers. This nomination can be made in terms of the number of PPF Shares too.

  • Tax Benefits Applicable on SBI PPF Scheme

The SBI PPF scheme provides a heavy tax benefit. It is because, the interest earned is total exempted from the income tax under the section of 88 of the Income Tax Act. The outstanding PPF amount is totally exempted from the wealth tax payment. These tax benefits make the PPF saving scheme one of the best savings tools.

  • Loans and Withdrawals

Loans from the SBI account against the SBI PPF account is permitted. The SBI PPF Accounts also accept the partial withdrawals. However, the loan amount and the amount of the Partial withdrawal is a subject to the age of the PPF Account and to the PPF Balance on any given date. Loans and Withdrawals are basically under the sole discretion of the bank.

  • Transfer of the SBI PPF Account

You can transfer the SBI PPF Account to any other bank or to any other SBI Branch. You can also transfer your account to the Post Office. The transfer of the SBI PPF Account is completely free. It does not charge anything.

Interest Rate on the SBI PPF Scheme

The SBI offers an attractive interest rate for the PPF account holders. The SBI PPF Account holds an interest rate of 8.7% per annum and the returns earned are completely tax-free. The SBI pays the full interest amount on March 31st. The applicable interest amount is calculated on the minimum balance between the 5th and the last day of the month.

SBI PPF Calculator

The SBI PPF calculator is a great tool for calculating the PPF Transactions and calculations. This tool not only helps in the calculations but also helps in planning your PPF investment. The calculator performs monthly and yearly investment calculations that you want to make and also the applicable rate of interest and then computes the interest paid over 15 years of the deposit period. This tool helps to determine the exact amount of return that they will receive in the investment if the rate of the interest does not charge.

How to deposit the Money in your SBI PPF Account

You can deposit money in the SBI PPF Account in two ways: through offline and online method. In the online method you can transfer it online and another method is to visit any SBI Bank branch and make the deposit.

Online Deposit of Cash

The SBI allows the customer to deposit their cash in the PPF Account through online using the Internet Banking. All you have to do is login to the SBI online banking account and perform the fund transfer. The fund transfer process is very much similar to that of the normal bank transfer. You are required to enter your PPF number as the account number to which the cash is transferred. The name of the payee should be exactly the same as that mentioned in the SBI PPF Account.

Offline Deposit of Cash

You can also deposit your cash in the SBI PPF Account offline, by visiting any of the SBI Bank Branch. Transferring the fund offline can be either done by the filling in a pay-slip or by depositing an account payee cheque.

How to Transfer your PPF Account from the Post- Office to SBI

To transfer the account from the PPF Account to the Post Office or the vice-versa is a very simple process. The only thing to do is to send a request of transfer, either to the bank or the post office. You need to submit a transfer request form along with the form SB-10b to the Post Office. You also need to submit an Identity Proof to the Post Master. Then the transfer request along with the documents will be verified and reviewed by the Post Master. The Post Master will then submit the documents and the application form to the SBI Branch. A cheque or a demand draft of your PF account is also sent to the SBI bank Branch.

Once the documents are revived by the SBI Bank, the bank will ask you submit a fresh PPF Account opening form along with the required KYC documents. The bank will review your documents and open your PPF account. A new passbook issued by the SBI Bank will not have any data of your old PPF Transactions details at the Post Office and will only have the details of the PPF Transactions carried out at SBI.

PPF account will be closed in case of change of status to NRI

A new notification has been issued by the Government of India (GoI) stating that if the holder of the PPF (Public Provident Fund) account becomes NRI (Non – residence of India) would be closed without the account reaching its maturity period.

This notice was issued earlier this month in the official gazette which states the above mentioned information.

The amendment to the PPF Scheme, 1968, says:

If a resident who opened an account under this scheme, subsequently becomes a non-resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes non-resident

This decision has been taken as according to the rules of PPF, NRIs are not permitted to invest in schemes like the National Savings Certificate (NSC), Public Provident Fund (PPF), and Monthly Income Schemes and other time deposits offered by the post office.

The Public Provident Fund (PPF) scheme, is a tax free savings scheme introduced by the Ministry of Finance (MoF) and it was launched in order to encourage savings habit among the Indians and create a retirement corpus.

PPF is a long term savings and tax savings instrument in India, and is administered by the provisions of Public Provident Fund Act 1968. Deposits made towards the PPF account is eligible for deduction under Income Tax Act and the interest earned on it is exempted from tax.

There are other eligibility criteria’s of this for say, this scheme is only for Residents of India who are above 18 years of age or above than that as there is no upper age limit to open an account in PPF. Also, HUF (Hindu Undivided Families) or NRIs (Non – Resident of India) or Foreigners are excluded from the scheme.

Investing in PPF is one of the best investment options as it acts as a good option for a long term investment scheme. The maturity period is 15 years and minimum lock – in period is 7 years. Moreover, the interest rate also gets annually compounded. It is also one of the most tax efficient, affordable and the most popular retirement scheme in India. Not is the interest rate tax – free but the withdrawals are also taxed deductible.

Comparing PPF, NSC, Sukanya Samridhi & Senior Citizens Saving Scheme

Savings and investments are two most important concepts in the Financial Industry.

Investment basically means that “any money that is spent today in the hope of financial benefits that may be reaped in a future time frame”. In other words investment is an asset that is purchased with the hope that it will generate income in the future.

There are different instruments of investment and every instrument has specific features and one should choose their investment instrument according to their need.

Below is the list of some of the most popular small savings scheme

PPF (Public Provident Fund)

PPF (Public Provident Fund) is a long term savings and tax savings instrument in India, introduced by the government in 1968. PPF scheme is administered by the provisions of Public Provident Fund Act 1968. Deposits made towards the PPF account is eligible for deduction under Income Tax Act and the interest earned on it is exempted from tax.

Features of Public Provident Fund (PPF)

Interest Rates – 7.8%

Tenure – 15 years

Initial Investment / Deposit – Rs. 100

Annual Deposit Amount – Rs. 500 – Rs. 1.5 lakhs per year

Deposit Frequency – every year for 15 years

Deposit Modes – Via cash, cheque, DD, online funds transfer

Nomination – Allowed

Loan Facility – From Year 3 to year 6

Renewal – Allowed, for an extra 5 years at a time

Withdrawals – Every year from year 7. Also complete withdrawal of funds can be made only at maturity.

Benefits of investing in a PPF scheme

In PPF the deposit period is of 15 years and a lock – in period is of 7 years which means this scheme serves as a long term investment goal. Investing in PPF is an ideal option for building a retirement corpus as it serves as a long term investment, tax returns and capital protection. PPF is one of the most low risk investment schemes as it is backed by the government itself.

Public Provident Fund (PPF) is governed by the Public Provident Fund Scheme 1968 and it scrutinizes over the eligibility criteria, documentation requirement, opening, maintenance and operation of a PPF account including loan facilities, withdrawals, closure, and extension of accounts among other things.

Eligibility Criteria

Enrolling into PPF scheme is open to Indian Residents only who are of 18 years or above than that as there is no upper age limit to open an account in PPF. Also, HUF (Hindu Undivided Families) or NRIs (Non – Resident of India) or Foreigners are excluded from the scheme.

NSC (National Savings Certificate)

National Savings Certificate is an Indian Government savings bond which is meant for small savings and income tax savings investments in India. Under this scheme interested people can invest their money and will receive a certificate in turn, containing the particulars of their investments. This scheme is considered to be one of the safest investment options.  The money you invest in NSC is safe and you receive interest on your investment. Maturity period of NSC is 5 years. In order to invest in NSC, you can visit your nearest post office and enrol in it. This scheme also offers the facility to transfer your investment from one post office branch to another. It also provides nomination facility, after your death.

Features of National Savings Certificate (NSC)

This scheme has a variety of attractive features such as it can be purchased from any post office in India. If any subscriber wants to have a joint account, they can open a joint account as well. The minimum amount of investment in NSC is Rs. 100 and there is no limitation on maximum investment, i.e. any individual can investment any amount they like. However, income tax benefit will be available only up to Rs. 1.5 lakhs. The NSC certificate is available in the denomination such as Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, and Rs. 10,000. Under this scheme the subscribers are allowed to avail loans as well.

Benefits of investing in a NSC Scheme

There are multiple benefits of purchasing National Savings Certificate (NSC) such as the interest can be tax free except for the interest that is earned in the last year. Investments made in an NSC come under 80 C of the IT ACT and afford the investor tax benefit. Also, NSC is a one time investment scheme where the minimum investment amount is Rs. 100 which is a very nominal, hence, it is within the reach of common man and anyone can buy this scheme.  NSC also works as a guarantee certificate and it also carries a lower rate of interest as compared to personal loans. In case you misplace your NSC certificate; you can get a duplicate one as well.

Sukanya Samridhi Yojana (SSY)

Sukanya Samridhi Yojana is a popular government schemes launched by the Prime Minister, Shri Narender Modi, which targeted at the parents of a girl child for their betterment. This scheme would encourage the parents to build a fund for the future education and other needs and expenses of their female child. This scheme has managed to reach a wider audience in the country as it is a great step towards providing financial security and financial independence to women.

Benefits of Sukanya Samridhi Yojana

According to the financial experts, availing this scheme would provide great benefits to the subscribers as it offers attractive rate of interest of 8.6% per annum which is more than that offered by most other schemes in the market. However, this rate if revised every year by the Finance Minister. An investment made under this scheme is also exempted from income tax under section 80 C of the Income Tax Act, 1961. Under Sukanya Samridhi Scheme, partial withdrawal is allowed on account of marriage or higher studies, once the girl child attains the age of 18 years of age. This scheme is meant for a girl child who is 10 years or old. And the account can be opened by the parents or guardian of the girl child and can be operated on her behalf until she reaches the age of 18 years. The scheme will mature after 21 years from the date of opening the account. The maximum amount that can be deposited in this account is Rs. 1, 50,000.

Senior Citizens Savings Scheme (SCSS)

In every society, senior citizens are always given the special place and consider them as the head of the family. In India, any people who have attained the age of sixty years or above are considered as senior citizens.

And in order to acknowledge their contributions and help them retiring gracefully, Government of India honours them by offering them wide range of attractive programs and facilities. The Senior Citizen Savings Scheme (SCSS) is one of them.

Senior citizen savings scheme boast of one of the best interest rates for any government sponsored investment product in India. As it is designed for the senior citizens, the procedure of applying for it kept extremely simple. To avail Senior citizen savings scheme fill up a simple application form at your local bank or post office and that’s the procedure. This scheme comes with all the security and assurance as it is backed by the Government of India. Under SCSS, a single applicant can open multiple SCCC account either individually or with joint investors. Also Senior Citizens Savings Account offers attractive returns i.e. 8.6% per annum. SCCC matures in 5 years but can be stretched for another 3 years, hence; it can be treated as a long term and both medium term investment schemes.

Features Public Provident Fund (PPF) NSC (National Savings Scheme) Sukanya Samridhi Senior Citizens
Interest Rates 7.8% 7.8% 8.3% 8.3%
Tenure 15 years 5 years 14 years 5 years
Risk factor Risk – free Risk – free Risk – free Re – investment risk
Account Opening Anyone Anyone Only guardian who have girl child Senior Citizens
Where to open Post Office / Bank Post Office Post office / bank branch Post office


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