If you have been ignorant towards your investments all these years, the ongoing coronavirus outbreak should come as an eye opener for you. Any investment made at the right time would have come in handy in the current scenario. If you have been late and are planning to open a PPF account and that too with the State Bank of India, there are a few things you need to understand. 

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What is PPF?

Public Provident Fund or PPF, which is backed by the government to mobilise small savings, is one of the most favoured investment schemes, as it offers attractive interest rates and complete safety and security of the investment. The PPF is also the most preferred mode of investment as it remains unaffected by existing market volatility, and one can benefit from no tax deduction on investment as well as returns. It is a long term investment scheme, hence the account cannot be closed before the maturity period of 15 years. 

What is PPF eligibility? 

An individual can open a PPF account either on his/her name or on behalf of a minor.

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What is the investment limit for PPF?

For one to open a PPF account, an investment of minimum to Rs 500 or a maximum of Rs 1,50,000 per annum is required. In other terms, one can invest up to a maximum of Rs 12,500 per month. However, if the amount is excess, it will not earn any interest. Further, the amount will not be eligible for rebate under Income Tax Act.  

What are Income tax benefits of PPF?

Income tax benefits are available on the PPF account under Section 88 of IT Act. Interest income is totally exempt from Income Tax. Amount outstanding to the credit is fully exempted from Wealth Tax also.

How to transfer PPF account? 

The PPF account can be transferred from one branch/bank to another, and this service is extended free of charge.

What are loan benefits of PPF?

Individuals can have loans or withdrawals on their PPF account, depending upon the age of the account as well as balance.