Public Provident Fund (PPF) is considered to be the best long term savings option in India. PPF is less risky and offers higher returns as compared to other investment options. PPF is supported by the government. To start your savings in PPF all you need to do is open a PPF account with the nearest post office or bank with a minimum amount of Rs 500.
Saving in PPF also gets the benefit of tax exemption as PPF gets the benefit of EEE (exempt-exempt-exempt). If you want to get some decent return on your money while avoiding any kind of risk, then this can be a good option for you.
The biggest problem of account holders in PPF is to close it. This happens when a PPF account holder fails to contribute the minimum amount in any subsequent financial year (April 1 to March 31). Closing the PPF account stops the withdrawal facility from the account. However, even after closing, the interest amount gets added to the total amount.
A closed PPF account cannot be closed before the maturity period of 15 years, but if you want to restart it, then the process is very easy.
rules for restart
To open a closed PPF account, you have to write an application at the bank or post office where you have opened it. Apart from this, a penalty of Rs 50 for each year of default, Rs 500 for each year of outstanding payment and minimum subscription fee of Rs 500 for the year the account is revived has to be paid by the account holder.
Your closed PPF account will be started as soon as possible after completing the formalities. If your PPF account has matured during dormancy or closure, you must first restart it before making any withdrawal.
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