PPF related query

[hitman]

I have a PPF account, which I opened through ICICI bank ..
Every month they automatically deposit some amount to my PPF account ..
So in one year all those installments total is less than 1 lakh (PPF allows maximum deposit of 1 lakh per year) ..
Now if I want to add more funds to my PPF account than can I do it? Cos on wiki it says

The investments can be made in multiples of Rs. 500, either as a whole sum, or in installments (not exceeding 12 in a year, though more than one deposit can be made in a month).

So those automatic installments makes it 12 installments in a year .. and if I make any extra "whole sum" deposit than will it increase the maximum allowed installments in a year?
Or it says tht one can deposit as much as amount as "whole sum" in addition to those 12 installments?

 

[Sushubh]

Had no idea there was a limit of 12 deposits in a year. I just make one deposit per year when I have an idea how much I can spare in the year... Keeps balance sheet tidier as a result. I guess ICICI Customer Care should be able to help easily if the policies are still in place or changed.

 

[SVK]

How much is maximum period for PPF amount? 10, 15 or 20 years?
After this period is over, how do we get the amount, and who pays it, govt or bank which holds our account?

 

[Sushubh]

From what I understand you are allowed to take out your funds after 15 years. But only the money that was deposited 15 years ago? No clue. Of course, you can take out money in advance too if there are any emergencies after paying the relevant fees/penalty.
The core benefit is that the entire money is tax free. Interest included. Few other options available where interest is tax free.

 

[SVK]

Recurring deposits for more then 5 years are tax free. I think even FD over 5 years are tax free.
I am thinking whether to open PPF account, or whether to open 10 years Recurring deposits account.
My concern for PPF is regarding how hassle free it is to get back money after investment term is over.

 

[Sushubh]

From what I understand PPF account is just like a regular savings account. I have a password associated with mine. No cheque book though. So, taking out money after 15 years should be as simple as filling out a slip and give it at the counter?
Too bad we are just adding questions instead of answering OP's

 

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[SVK]

After dropping plans for Mutual Fund, I wanted to start thread for PPF, this thread helped. Replying to this thread will keep it "HOT", so others who know answers would surely help

 

[mhsabir]

PPF is minimum 15 years, and then blocks of 5 till you want.. so even 25, 30 etc is possible

 

[Sushubh]

Did not get you. What happens after 15 years? You can take out all your money+interest? You have to renew it manually for additional slabs of five years if you want? You do not get interest after 15 years if you do not do that?

 

[mhsabir]

Go for PPF only if you are ok with long term commitment, ofcourse you can drop off to a meager amount say 500 (or say 1000) a year... thats the benefit..

Did not get you. What happens after 15 years? You can take out all your money+interest? You have to renew it manually for additional slabs of five years if you want? You do not get interest after 15 years if you do not do that?

You can withdraw or continue to stay invested for another 5 years. 16-20th years will be just like years 1-15.
Yes, you need to opt for it manually. The moment you invest its for 15 years, its up to you to extend or withdraw.
Even I am not sure what will happen, if we leave it as is without extending or withdrawing...
I suspect you can keep but it will not get you the PF-rate and benefits, not sure even if you would be allowed to even add amount to it without extending it first.