Public Provident Fund FAQs

(1) I am an NRI. Can I open a PPF Account?

Answer: No. An NRI cannot open a PPF account. However, an Indian resident PPF account holder who obtains NRI status after opening a PPF account could continue his/ her PPF account until its maturity.

(2) My PPF Account is inactive. How to reactivate it?

Answer: You can reactivate your PPF Account by paying the holding branch a penalty of Rs.50 for every year the account was inactive. You will also have to deposit a minimum of Rs.500 for every year the account was inactive as well as for the year in which you want to activate your account.

(3) Can I invest more than Rs 1.5 lakhs in a financial year?

Answer: No. You cannot invest more than Rs 1.5 lakhs in a financial year.

(4) Is it necessary to withdraw my PPF amount on maturity?

Answer: No. It is not necessary to withdraw my PPF amount on maturity. You can extend your PPF Account withing 1 year from its maturity for a further period of 5 years and so on, if you wish to.

(5) Can the extension is allowed for 2 or 3 years after maturity?

Answer: No. It has to be extended for 5 years.

(6) How many times can I extend my PPF Account?

Answer: There is no limit for extension of PPF Account. You can extend it for as many times as you wish to in a block of 5 years each.

(7) Can I avail tax deduction of my wife's PPF account?

Answer: You can take the benefit of tax deduction of your wife's PPF account only if you have made the contribution in her account as the person making the contribution is eligible for tax deductions u/s 80C of income tax act.

(8) Can I open a PPF account jointly along with my wife or children?

Answer: No. You cannot open PPF accounts jointly as this option is not provided under the PPF scheme. A person is allowed to open, hold and operate only one account in his/ her own name and not in joint name. You can, however, nominate your wife or child, if you wish to do so.

(9) If I require some money from my PPF account before its maturity then what should I do?

Answer: If your PPF account is old then you can either avail loan facility or you can make partial withdrawal from your PPF Account. Note that the loan facility is allowed only between the 3rd and 6th year of operating an active account. Partial withdrawal is allowed from the 7th year onwards.

(10) Can I withdraw from my PPF account to invest again in my PPF account?

Answer: Yes, you can do so but only after 7 years as partial withdrawal is allowed from the 7th year onwards.

(11) It is mandatory to nominate in PPF Account?

Answer: It is not mandatory to make a nominee, however, it is always advisable to nominate some one in order to avoid conflicts in the event of death and to have an easy transfer of funds to the nominee without any hassles.

(12) How is frequently interest compounded?

Answer: The interest on the PPF account is compounded annually and is credited at the end of year i.e. on 31st March each year.

(13) Who cannot invest in PPF?

Answer: HUFs, Foreigners and NRIs cannot invest in PPF. Joint account cannot be opened, however, nomination facility is available.

(14) Can I transfer my PPF Account to another bank or post office?

Answer: Yes. You can transfer your Public Provident Fund (PPF) Account from a bank or a post office to another bank or post office or any other branch of the same bank where you maintain your PPF Account.

(15) Can I maintain more than 1 Public Provident Fund (PPF) account in my name?

Answer: Only 1 Public Provident Fund (PPF) account can be maintained by you. However, an account opened on behalf of a minor can be operated by you in addition to that account.

(16) Can grand-parents open a Public Provident Fund (PPF) account on behalf of minor grand-child?

Answer: No. Grand-parents cannot open a Public Provident Fund (PPF) account on behalf of minor grand-child.

However, in case of death of both the Father and Mother of the minor grand-child, grand-parents can open a Public Provident Fund (PPF) account as guardians of the grand-child.

(17) How much amount can I withdraw from my PPF Account prematurely?

Answer: You can make one withdrawal every year from the 7th financial year onwards. The withdrawn amount cannot exceed 50% of the balance of the credit at the end of the 4th year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower.

(18) How can I maximize the PPF gains?

Answer: To gain maximum interest, you should make a deposit before 5th of the month as the bank/ post office considers the deposits made from 1st to 5th of any given month for interest calculation.

(19) How can I calculate the PPF interest?

Answer: You can use PPF calculator to calculate the PPF interest.

(20) Can open a PPF account in any post office in India?

Answer: Yes. You can open a PPF account in any post office in India.