In this post we will look at the ppf interest rate 2013
PPF – Public Provident Fund a government of India initiative, mainly helps working, business and home makers to save their hard earned money. Although Interest Rate varies every year it is still the best way to save tax or save for the future.
PPF Interest Rate 2013 – 14
Prime Interest Rate Revised by The Reserve Bank of India to 8.7 Percent .
The New Interest Rate for the Financial Year 2013 Calendar was changed by the Reserve Bank of India. (RBI) notified 0.1 percent reduction each in interest rates on Public Provident Fund (PPF) to be effective from fiscal beginning April 1, 2013. The rate of interest on PPF has been lowered from 8.8 percent to 8.7 per cent with effect from April 1, 2013
The Rate of Interest will remain to be 8.7 % un-till the next financial year or when the Government of India changes. For the existing 8.7 % with 100,000 investment and best time of investment defined. The returns after 15 years – ( 2028 ) will be 3,497,179 INR (34 Lakhs 97 Thousand and 197 Rupees). See the table below – Ideal case – Investment made on 1st April – 5th April every year for 15 years
I had opened a PPF a/c on 28.03.1988. I got two extensions of 5 years each. As such maturity was due on 28.03.2013.
I am not interested in another extension as I need money in 2015 for my daughter’s marriage. I want to know that will I continue to get interest on my account at the rate of of 8.7%(present rate on PPF deposit) till I withdraw the full amount in 2015.
I will be grateful to the authorities if above is clarified at the earliest.
With regards,
A.K.Bishwas
Kulti (WB)
713343
Any time after your account matures i.e. after the 15 year tenure is over, you can withdraw the entire balance using Form C. Interest will continue to be paid on your account and you will receive the total amount including interest up to the last month preceding the month in which you apply for a withdrawal.
I heard that upon maturity, you again go only for 5 years locking. If this is the case the how will the Govt pay PPF interest rate for 2013-2015 period?
May be they pay the normal rate (4%?) for savings account?
No, the PPF investment can be extended by a period of 5 years each after completion of 15 years, the interest rate will be as per the PPF Rules
If I open a a/c now at the interest rate at 8.7.If the interest rates r reduced in 2016,the new rates will be applicable from 2016 or from 2014
Abhijit,
The Interest rate is changed every year during march budget. When interest rate is reduced its applicable during that financial year and not from the beginning when you opened the account.
of course from that financial year. but beware new rate of interest will be applicable for all your earlier amount. if rate is increased, fine. if it is decreased, whole amount will be suffered. here is the dynamic change government has taken. this is highly beneficial to gov. as now onwards rate of interest are on southward direction.
Hello Sir,
Is that any harm to maintain two ppf account in different banks ?
NEVER – open two PPF Account in different banks. The amount will seize to earn interest and one of the amount will be taxed and you will lead to problem. Cancel the same immediately. Its not recommended by Govt of India.
I have PPF Account in SBI opened in June 2013 for 1 Lakh , I have paid 1 Lakh before 31st March 2014 in multiple payments. But i received only INR 2741 as my Interest for 1yr on 31st March 2014, I think im suppose to get Rs 8600 as my 1 year interest ? please advice how to proceed further now?Whom should i ask ?
Only when you invest b/w April 1st – 5th 2013 you could have got 8600 INR else its based on balance available within each month before 5th
Hi Sunithbabu,
I’m new to PPF, i need your suggestion in opening a PPF account.
which is the best PPF account like post office/sbi/icici… i hope interest rate would be same in all of them. And I see in Post office the min locking period is 6yrs.
Is PPF better than RD? and is there any other scheme which is not related to market and gives much better results than PPF/RD.
Thanks,
Nazeer
1) SBI
2) Same
3) That depends on how you want to save your money, short term RD is better
4) PPF is by far the best investment plan
Can PPF account maintained in Post office be transferred in any nationalized or private bank?
Yes, Possible
If so, please let me know the procedure. Thanking you.
Read one of my post on documents to be submitted for PPF Transfer
i had opened a ppf account dated 8th nov 2012.
what is the maturity date of my ppf account??
16th year from 2012
Hello Sunithbabu,
I opened my ppf account with sbi 3 years back and invested approx 60 thousand. Can i close my ppf account right now due to personal reasons.
Incase in future i want to open another ppf account then can i open or not?
No, you cannot close the ppf account. You need to wait for the completion of 15 years.
I have opened a PPF account for my daughter. Can I open a separate PPF account for my new born son? Please advise.
No, you can open as a guardian …
mother’s ppf account and her minor son’s ppf account. If we deposit 150000 in each ppf account is this ok? can we earn interest @ 8.7% in both accounts? Of course only mother will claim for tax benefit of 15000 under 80c. But will bank give interest in both accounts? pl. clarify.
Note: together 1.5 Lakhs and not 1.5 lakhs in each …
i doubt your answer here. 1.5 l is investment limit one can consider to invest individually. of course, claim can be taken only for one lot of 1.50. let me simplify. I have 4 family member including me. I am earning person. I can open and invest total 4.50 (1.50 * 3 ) = 4.50 in 3 accounts. (investment planning) but can claim deduction of only any one 1.5 account.
Does PPF interest rate of SBI & Post office are same ……? if yes then, what is the reason that a lot of people are interested in opening PPF account in post office and not with other banks…..?
Yes, they are the same. See, opening in banks is the best as they have core banking and they help in online transfer… Post Office don’t have this option.
Dear Sunithbabu,
We have a secluded login through epf.com (with our UAN #) to login and check how much pf / pension is accumulated month wise. Like wise, is there any login to check on ppf. Also I hold PPF with Andhra bank and my branch is not facilitating in Online transfer. They expect me to deposit every time in person. Any suggestions?
Yes possible, you need to ask the bank manager to get you access to PPF Account Online
Sir, please explain:
i) suppose i had opened an a/c on 3/2/15. will my a/c mature on 1/4/30 OR 1/4/31.
ii) suppose if i open on 1/4/15, when my a/c will mature? do i have to subscribe on 1/4/31.
thank you,
sugandhi
April 1st 2030 for 3/2/15
April 1st 2031 for 1/4/15
Can I open 2 ppf accounts on my name and my daughter who is 3.6 years? She will get 9.2% and me ?
Two accounts possible but max investment in both together is 1,50,000 INR go for a http://www.sukanyasamriddhiaccount.co.in 1,50,000 + 1,50,000 for both in two different accounts if you can afford …
Can i deposit my ppf installment online?
Yes if the bank permits
Can i deposit my ppf installment online in post office?
Not possible in post office.
iam open for ppf account this month, amount deposit every month before 5th day or one installment of april before 5th day – what type is better
one time during april will yield higher interest rate as compared to monthly which have slightly lesser interest
Is is necessary to maintain same amount every year or we can deposit any amount between 500-150000 every year?
Is it necessary to deposit every year…………..or we can drop for some time.
Best
Shubh
No 500 – 1,50,000 INR can be varied every year
Is it necessary to maintain same amount every year or we can deposit any amount between 500-150000 every year?
Is it necessary to deposit every year…………..or we can drop for some time.
Best
Shubh
No, min 500 and Max 150000, yes deposit minimum of 500 INR every year.