Very well elucidated. The speaker spoke unhurriedly and explained in detail all the aspects. Kudos to Team ET Money. Special thanks to the speaker for his clarity in speech.
Team ET Money, how are you so good!!?? Covering all the aspects of a topic in depth with such clarity & fluidity within 17 minutes, consistently every video after video, must surely require tons of expertise and efforts. Thank you very much team ET Money!
Thank you Kunal Mathuria. We are investors ourselves (a lot like the viewers we create content for), so it becomes very easy to bring out relevancy in the content. Afterall the problems, dilemma and curiosity that others face is the same that we go through.
@@ETMONEY hi ETMoney, can you please respond to my comment I posted couple of days ago. I want to know what’s the rule to withdraw money for a NRI. Can a NRI withdraw the money before maturity?
This is just so wonderful. I'm still a new PPf Subscriber having started in March 2021 and knew some of the basics. But still, hatsoff to the team for coming up with this video which showed how much brains has gone behind a simple scheme like PPF and I'm sure the knowledge gained has been nothing short of an eye-opener. Great job and looking forward to more such videos. On a side note, I've even started my investment journey through ET money after getting impressed by their informative videos.
Suddenly after seeing this video it came to my mind that if we plan in a better way instead of keeping all emergency funds in FD if 5 years of PPF is nearing or completed we can see it an option to keep some part of emergency funds in ppf as we can withdraw 50%
Liked this video even before watching anything because I know Team ET Money always delivers quality content for sure. I have drilled down your channel & watched almost all videos in last 1 month. Thank u Team ET Money for delivering quality content all the times.
1. Videos are Simple, Elegant, Informative. 2. You are a genius. 3. So much good information provided in a simple manner. 4. One suggestion: Rather than moving the presenter of the video left and right, try to keep him at one side. Makes the viewer concentrate better on the video. 5. Great presenter; he is one of the best speakers. Very clear and looks & sounds sincere.
Being a PPF subscriber, I didn't knew many of the points. Always grateful for ET Money and their team for seriously making very informative video each time. Nowadays, am sure that your videos will be very good only so I click on like button as soon as I open it 😁 Great job 👌
Thanks for detailed info. I have a query. 1) At what age of kid/ minor a PPF account can be openned. 2) If I take PPF account in my kid name how many times 5 years block can be extended. 3) How many max years it can be continued.
Withdrawal query: Video says we can withdraw 50% of prev year closing balance. Whereas I was told that it is 50% of 4 year earliers closing balalnce. Please clarify.
@@ETMONEY I went to SBI and they gave me only 50% of what I had on 31st March 2018 saying you can withdraw this much amont. Kindly Confirm if it's not true I would visit them.
This is a headache. Three sources are giving three different information 1. www.cnbctv18.com/personal-finance/are-ppf-withdrawals-taxable-in-india-9860961.htm says that its simply 50% of the amount accumulated in the account at the end of the previous financial year 2. www.livemint.com/money/ask-mint-money/ppf-partial-withdrawal-premature-closure-rules-explained-11626578171960.html says the amount which you can withdraw from your PPF account shall be restricted to higher of fifty per cent of the balance standing at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year. 3. And in complete opposite, article economictimes.indiatimes.com/wealth/invest/how-to-partially-withdraw-from-your-ppf/articleshow/67205654.cms?from=mdr says that the total amount eligible for withdrawal in a particular financial year is the lower of: a) 50% of the PPF account balance at the end of the financial year, preceding the current year, or b) 50% of the PPF account balance at the end of the fourth financial year, preceding the current year. So one is saying 50%, the other is saying lower while the third source is saying higher. Please have a check and do share if you have a better source/info on the same. Thx
Hi thanks for clarity on how much i can put minimum every year, also please correct me the amount which i have added this year and the amount which i have received with interest in last year 31st march, and the total amount will be calculated with interest on 31st march and added to my account correct?
What a clear and lucid explanation.... this has cleared many doubts of mine and hopefully of other investors also... thanks ET Money and Shankar Nath in particular for creating such a useful stuff... thanks :)
As usual another informative video. Just to know more on this, I always belive it is a great financial instrument for the government to raise money considering the lock-in period. The only problem for people like us is the lowering interest rate since 2010. If the government increase the interest rate and also increase the cap (1.5 lac to 2lac) then there will be good fund raising from this financial instrument. And yes this they can do gradually. Also for a retail people like us this will give more benifits like EEE benefit with higher rate of interest and higher cap. A win-win situation for both and may be good for economy.
Thanks. The story we heard was that the original retirement vehicle that the Government of India had designed was the Employee Provident Fund. But then it saw that there are millions who don't fit in this EPF framework as they are self employed or in very small organizations (say 4-5 members). For this, the PPF scheme was created in 1968. So, thats a little history
@@aswinjv5532 if you have money, it would be of benefit if you make full 1.5 lakh in the month of April, so as to enjoy the interest for entire financial year
@@aswinjv5532 dear ,if you have idea on which mutual fund you need to go with,then go to particular mutual fund website and start sip, no need of going through bank . There will be option to select direct or regular fund, select direct
We both (me and my husband) are sr citizens have PPF account opened in year 1978 & 1983 respectively renewed more than twice till now. We are now thinking of settling in USA forever. May come back for upto six months in 1-2 years if our health permits. My questions to you are 1) Can we continue our renewed PPF accounts by paying 150000 every year and get the relief under section 80C ? 2) Can we extend them again on completion of 5 year period? 3) If not can we keep the account as it is without adding money to it and for how long?
I have a question, 1. An Indian citizen opens an PPF account 2. Indian citizen becomes an NRI 3. After 15 year maturity the NRI does not close the account 4. NRI returns to India after 25 years Can the NRI resume the original account with then account balance? I know the dormant account would not earn any interest from 15th year of maturity to the 25th year when they return. But I would still appreciate having the balance amount in the PPF account. Any help is appreciated.
Thank you, very crisp & informational! After taking print out of online application, SBI (not sure about other banks) gives you another supplementary form to be filled by hand, & submitted in person along with self attested xerox of IDs. After that it is matter of a few minutes.
Thank you. In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid even before the completion of 15 years, to the nominee or legal heir of the deceased person
Hi team ET money.. Question: What if user dies before maturity period of 15years.. Can account be closed by nominee. What amount would nominee can withdraw.? Example: Person A dies at 10th year. Does the nominee B with draw amount with intreset gained .
Whats the guarantee of EEE status when govt can easily tweak the laws and bring pf interest into taxable income.. like they have done with epf > 2.5 lakhs 🤷
Very insightful. Thanks for the knowledge. However in the scenario of falling interest rates and a long lock-in period, do you still advise to invest in PPF or should we choose debt fund? For tax savings, I am investing in ELSS through etmoney app.
Very lucid explanation. Thank you so very much.. I would like to know whether we have to submit any application to the bank where the account is maintained on maturity to get the total amount transferred to his SB Account?
Sir, as usual the video is very informative and useful. I have a doubt regarding PPF. If someone investing 1 lac per year for 15 years. Can he withdraw all these 15 lacs plus interest on the maturity of PPF account i.e on 15th years. Or each 1 lac has 15 years maturity period?
Thanks for useful video. How government come to a certain % of PPF interest rate? I opened PPF in 2016 @8% & I thought it is fixed rate. Now after gaining knowledge I get to know it is dynamic. How to react to this? reduce allocation to PPF assuming future interest rates would be very less. How an existing investor plan this? I cannot afford CFP but I can do is hope you answer or cover this topic.
Time my friend. Always go for 30+ years. 8300 per month with current rate is 1cr as it is compound interest. Where you have only put 30l . The same game bank loan plays where you end up paying triple or even more if you take loan for 25-30 years.
IMHO PPF or any fixed returns scheme like FD etc should only be considered by someone having a big corpus and wants to diversify. These instruments don't even beat inflation. They offer no upside. The only benefit is the downside is capped, and you know for certain how much money you'll have at a certain point in the future. (Hint - over 30 years, you'll lose approx 30% of your money, adjusted for inflation. I'm 32, I'm just building my corpus, and this is a senseless investment for me. Mutual Fund SIP and Retail Equity investing are better ways.
8:50 Is interest calculated from 5th or 6th of the month ? In different websites , it is mentioned differently. If I deposit lumpsum on 5th of April , say 11am morning , will it still be considered for that month's interest calculation or only considered next month ?
Dear Mr. Nath, on the interest calculation, if deposit on the 6th of a month, you mentioned that months interest will not be given. However, in the next month if I deposit on 2nd, will the interest of this month be compounded from the previous month and paid, if yes, do you really lose interest at all ?
Hi. You don't make interest for the first month - that's a loss. For example - say you deposit 1000 rupees in month1 (on the 6th). No interest is paid for that month. So balance remains at 1000. In month 2 (paid on 2nd), you deposit another 1000 rupees. So 1000+1000 = 2,000 is which you get interest of say 20 rupees. So what did you miss? By depositing earlier than 6th, you could have got 10 rupees interest in month 1 too. So the interest calculation in month 2 would have been on 1000+10+1000 = 2010. So yes, you do lose money by not depositing it within the first few days. And as you rightly said, the compounding factor will ensure that this loss becomes bigger over time
Dear ETMoney, Have a question. I'm currently in NRI status and didn't open any PPF a/c. Planning to come for vacation and stay for 3 months in India and come back. During my vacation days Can I open PPF a/c & later continue as NRI?. What is the open option for me . Please assist
Dear friend (ET Money) Need your advise as I want to transfer my PPF account from one bank to another , the account is in maturity year and I plan to take extention with contribution . Please advise , if it is safe or may result is n a problem ?! What are the steps ?! Where to initiate it from, the existing bank or the new desired bank ?! Please note : existing bank is CBI and new proposed bank is SBI !!
Very informative video. Wanted to know when an account, after attaining maturity, gets extended(with contribution) for a block of 5 years and thereafter no form H is submitted, would fresh contributions be allowed in the account ?
Good presentation and well articulated. Wanted a confirmation on my following observation - assuming that I am withdrawing 1.5L from my savings account for investing in PPF then the the best day for investing in PPF is the 4th day of the month (and not any day between the 1st and 5th as is commonly understood) since the 1.5L which would be earning interest from the 1st to the 3rd of the month in the savings account while if put before that in PPF it would end up not earning any interest. Is my understanding correct ?
I am 68 yrs. my ppf account was closed around 15 yrs ago and money was withdrawn. Can i open a new pof account? 2- link to know list of banks opening ppf a/c 3- is it possible to change bank of my son’s ppf a/c?
If the interest rate is changed by government. Does it apply to already opened account also? Or the rate will not change until end of your maturity period.
Hi... Your videos are very informative... Thanks for the research. Could you please clarify how interest is calculated on PPF investment? I invest 10000 at 7.1 in year 1 and in year 2 say the int rate becomes 8, then will the 10000+int get int at rate 8, or this 10000 keeps getting 7.1 until maturity?
Respected team thank you for valuable information. Quick question: Currently PPF interest rates are on downward trend and will continue being the same considering India developing rapidly. Would like to know your point of view whether we should invest in a 'Guaranteed Insurance Plan' (No ULIP, No Moneyback, No Endowment) which assures us a 6% p.a. return or go with PPF as currently it is providing 7.1% but in future it could reduce and go below 5% as well. Also both provides the tax savings feature. Looking forward to hear from you.
Hello Team, in case of partial withdraws, does the tax benefit availed under 80 C in earlier years get revoked. Also is the withdrawn amount interest component taxable? Request for your guidance.
Just a quick question, is it possible to have separate PPF account for husband and wife, like minor is there a condition that the total should be 1.5 lakhs or can have more
Hi Etmoney, can one extend with a mix of with contribution and without contribution after maturity For e.g. after maturity for the first 5 year block can it be without contribution however the next 5 year block can it be with contribution
Perhaps the best educational video on PPF. Govt. of India should use this video as their official PPF guide. Kudos to ET Money and Shankar !
Very well elucidated. The speaker spoke unhurriedly and explained in detail all the aspects. Kudos to Team ET Money. Special thanks to the speaker for his clarity in speech.
Thank you very much. Glad you found the content useful
Team ET Money, how are you so good!!?? Covering all the aspects of a topic in depth with such clarity & fluidity within 17 minutes, consistently every video after video, must surely require tons of expertise and efforts. Thank you very much team ET Money!
💯 agree 🙋🏻♂️
Thank you Kunal Mathuria. We are investors ourselves (a lot like the viewers we create content for), so it becomes very easy to bring out relevancy in the content. Afterall the problems, dilemma and curiosity that others face is the same that we go through.
@@ETMONEY hi ETMoney, can you please respond to my comment I posted couple of days ago. I want to know what’s the rule to withdraw money for a NRI. Can a NRI withdraw the money before maturity?
@@ETMONEY 🔥🔥🔥🔥🔥
This is real value add, I have PPF account from past 7 years but I didn't know most of the things. Thank you ET Money.
Most welcome. Oh yes, some of the points were new to us aswell. Glad you found it helpful.
I truly admire this channel and the way Mr. Nath explains. Simple, graceful and jargon free. Respect!
Thank you very much for your appreciation!
This is just so wonderful. I'm still a new PPf Subscriber having started in March 2021 and knew some of the basics. But still, hatsoff to the team for coming up with this video which showed how much brains has gone behind a simple scheme like PPF and I'm sure the knowledge gained has been nothing short of an eye-opener. Great job and looking forward to more such videos. On a side note, I've even started my investment journey through ET money after getting impressed by their informative videos.
Thank you for the kind words, Railfan. Your love and support is what keeps us going.
Suddenly after seeing this video it came to my mind that if we plan in a better way instead of keeping all emergency funds in FD if 5 years of PPF is nearing or completed we can see it an option to keep some part of emergency funds in ppf as we can withdraw 50%
Liked this video even before watching anything because I know Team ET Money always delivers quality content for sure. I have drilled down your channel & watched almost all videos in last 1 month. Thank u Team ET Money for delivering quality content all the times.
Most welcome and thank you for your continued patronage
CA Pavan ji , greetings from my side . I agree 101% with you . Another excellent video from Mr. Nath
Very true 🙋🏻♂️
The best explanation of PPF that i have ever seen or heard! Fabulous video!! 👍🙏👏
Thank you!
1. Videos are Simple, Elegant, Informative. 2. You are a genius. 3. So much good information provided in a simple manner. 4. One suggestion: Rather than moving the presenter of the video left and right, try to keep him at one side. Makes the viewer concentrate better on the video. 5. Great presenter; he is one of the best speakers. Very clear and looks & sounds sincere.
Being a PPF subscriber, I didn't knew many of the points. Always grateful for ET Money and their team for seriously making very informative video each time. Nowadays, am sure that your videos will be very good only so I click on like button as soon as I open it 😁
Great job 👌
Happy to help, Sachin KN. Thank you for the appreciation!
Bestest person to explain on any topic
:) .. thanks for the appreciation
I have learned a lot from the ETMoney team, great effort. Great way to diversify against equity for retirement purpose.
Thank you very much for your vote of confidence, Harsh Thakkar 👍
Thanks for detailed info. I have a query.
1) At what age of kid/ minor a PPF account can be openned.
2) If I take PPF account in my kid name how many times 5 years block can be extended.
3) How many max years it can be continued.
Withdrawal query: Video says we can withdraw 50% of prev year closing balance.
Whereas I was told that it is 50% of 4 year earliers closing balalnce.
Please clarify.
Can you pls forward the link of where you read this? We'd certainly like to verify this
@@ETMONEY I went to SBI and they gave me only 50% of what I had on 31st March 2018 saying you can withdraw this much amont. Kindly Confirm if it's not true I would visit them.
This is a headache. Three sources are giving three different information
1. www.cnbctv18.com/personal-finance/are-ppf-withdrawals-taxable-in-india-9860961.htm says that its simply 50% of the amount accumulated in the account at the end of the previous financial year
2. www.livemint.com/money/ask-mint-money/ppf-partial-withdrawal-premature-closure-rules-explained-11626578171960.html says the amount which you can withdraw from your PPF account shall be restricted to higher of fifty per cent of the balance standing at the end of the fourth year immediately preceding the year of withdrawal or at the end of the preceding year.
3. And in complete opposite, article economictimes.indiatimes.com/wealth/invest/how-to-partially-withdraw-from-your-ppf/articleshow/67205654.cms?from=mdr says that the total amount eligible for withdrawal in a particular financial year is the lower of: a) 50% of the PPF account balance at the end of the financial year, preceding the current year, or b) 50% of the PPF account balance at the end of the fourth financial year, preceding the current year.
So one is saying 50%, the other is saying lower while the third source is saying higher.
Please have a check and do share if you have a better source/info on the same. Thx
@@ETMONEY Sure, appreciate your checking on this.
One of the flawless presentations that I have seen. Besides you Thanks to the awesome team you have
Great video for most important investments option.
Thanks
Inspiration of shankar sir I am started Rs5000 SIP from ETmoney
Wishing you the very best, Datta.
You are on top of the game of financial literacy, this would be creating strong eco system of finance and investment!
Thank you for the appreciation, Vivek Sharma
Very good explanation. I just came to know my PPF will mature after 16 years and not 15. Thank you Sir!
Most welcome. Glad you found it useful
Hi thanks for clarity on how much i can put minimum every year, also please correct me the amount which i have added this year and the amount which i have received with interest in last year 31st march, and the total amount will be calculated with interest on 31st march and added to my account correct?
What a clear and lucid explanation.... this has cleared many doubts of mine and hopefully of other investors also... thanks ET Money and Shankar Nath in particular for creating such a useful stuff... thanks :)
Thank you very much for your kind appreciation, Prabhakar Singh
As usual another informative video.
Just to know more on this, I always belive it is a great financial instrument for the government to raise money considering the lock-in period.
The only problem for people like us is the lowering interest rate since 2010. If the government increase the interest rate and also increase the cap (1.5 lac to 2lac) then there will be good fund raising from this financial instrument. And yes this they can do gradually.
Also for a retail people like us this will give more benifits like EEE benefit with higher rate of interest and higher cap.
A win-win situation for both and may be good for economy.
Thanks. The story we heard was that the original retirement vehicle that the Government of India had designed was the Employee Provident Fund. But then it saw that there are millions who don't fit in this EPF framework as they are self employed or in very small organizations (say 4-5 members). For this, the PPF scheme was created in 1968. So, thats a little history
The only video which covers all information of PPF in a very simple way.very useful. Thank you👍
Glad it was helpful! Thx
Superb Explanation! 👍 Also one should remember that PPF would be 15 years of SIP in fixed income category.
Thank you
Is it recommended to pay 1.5 lakh is one shot or in partial payment monthly 12.5k
@@aswinjv5532 if you have money, it would be of benefit if you make full 1.5 lakh in the month of April, so as to enjoy the interest for entire financial year
@@sunil1229 thanks buddy for ur response , in mutual funds via bank , which bank is good to go with sip
@@aswinjv5532 dear ,if you have idea on which mutual fund you need to go with,then go to particular mutual fund website and start sip, no need of going through bank . There will be option to select direct or regular fund, select direct
ET Money Video and Content quality is always No-1
Thank you for your appreciation & your continued support of our efforts, Pankaj Bhandari
this comment is for appreciation.. for always picking best topics
Thank you!
Great Level of Clarity on PPF.
Thanks Team ET money for In-depth reasearch.
Our pleasure! Thanks for your appreciation
We both (me and my husband) are sr citizens have PPF account opened in year 1978 & 1983 respectively renewed more than twice till now. We are now thinking of settling in USA forever. May come back for upto six months in 1-2 years if our health permits. My questions to you are
1) Can we continue our renewed PPF accounts by paying 150000 every year and get the relief under section 80C ?
2) Can we extend them again on completion of 5 year period?
3) If not can we keep the account as it is without adding money to it and for how long?
I have a question,
1. An Indian citizen opens an PPF account
2. Indian citizen becomes an NRI
3. After 15 year maturity the NRI does not close the account
4. NRI returns to India after 25 years
Can the NRI resume the original account with then account balance?
I know the dormant account would not earn any interest from 15th year of maturity to the 25th year when they return. But I would still appreciate having the balance amount in the PPF account.
Any help is appreciated.
Thank you for the information Mr. Nath 🙏
Most welcome
Thank you, very crisp & informational!
After taking print out of online application, SBI (not sure about other banks) gives you another supplementary form to be filled by hand, & submitted in person along with self attested xerox of IDs. After that it is matter of a few minutes.
Most welcome. Glad you liked it
Salute to shankar nath & team that brings up such content regularly. These are such videos I can forward directly to my parents too. Good work 🚀
Thank you Mayank Verma. Glad you found the video useful. We too learnt quite a bit about PPF while creating this video
Very informative and excellent point to point presentation, Sir👍👏
Thanks Uday Prabhu
Very nicely and unhurriedly explained. But one thing sir , what will happen if the account holder dies at the middle of the tenure ?
Thank you. In the event of the death of the PPF account holder, the balance amount in the PPF account will be paid even before the completion of 15 years, to the nominee or legal heir of the deceased person
An elaborate explanation of all the points pertaining to PPF which not many would know. Thanks ETMoney
Most welcome. Glad you liked the content
Hi team ET money..
Question:
What if user dies before maturity period of 15years.. Can account be closed by nominee. What amount would nominee can withdraw.?
Example: Person A dies at 10th year. Does the nominee B with draw amount with intreset gained .
Very good method to describe without wasting time
Thanks
Thank you sir for such a detailed and valuable information.
You are most welcome
Clears so many doubts,nicely explained
Thanks!
Whats the guarantee of EEE status when govt can easily tweak the laws and bring pf interest into taxable income.. like they have done with epf > 2.5 lakhs 🤷
DONT INVEST IN ANY GOVERNMENT RELATED INVESTMENT. EXCEPTION FOR NPS
Yes apparently they can do but I dont think they would. Ever.
Thank you ET Money for this detailed analysis of PPF . VERY USEFUL 🙏
Glad you liked it
Thankyou so much......May God bless you..!!.....fr ppl like me with no one to guide....i wish n pray huge success for you...Sai bless Shankar..!!
It's our pleasure. Thank you for your kind words of appreciation!
Thanks a lot for making it so simple to understand.
One Question: can we transfer the PPF account from one bank to another?
Most welcome. Yes, you can transfer. There are many articles on the Internet explaining the process, doesn't seem difficult
Excellent detailed information on PPF account. Thanks!
Glad it was helpful!
Your videos are precise and very professional. Appreciate it :)
So nice of you. Glad you like them!
As usual amazing edition and appreciation it
Thank you so much 😀
Nice. Insights 👍
Thanks!
clear & concise !!!
Thanks!
This video is real good.liked the way you explained things in simple way
Thank you very much
Simple and clear. Just wonderfully explained. Thank you
Most welcome!
You are a great teacher. Thank You🙏🏼🙏🏼
Thank you for your kind appreciation
Very well informed.... Just a ques... Can we transfer into PPF account from another bank account directly?
Thanks. You might have to check with your bank on this one.
Excellent! Both information and presentation. Thank you.
Most welcome
Very insightful. Thanks for the knowledge. However in the scenario of falling interest rates and a long lock-in period, do you still advise to invest in PPF or should we choose debt fund? For tax savings, I am investing in ELSS through etmoney app.
Thank you very much!
VPF vs PPF next please!
Your way of presentation is awesome 👏
Thanks
Best Video ever on PPF
Good job Done 👍
Thank you
I am glad that i found this channel. ❤️
Thanks
Can Parents invest in ppf account of their major children
Very lucid explanation. Thank you so very much.. I would like to know whether we have to submit any application to the bank where the account is maintained on maturity to get the total amount transferred to his SB Account?
Thank you
What is the rationale of the new TDS rule in the case of PPF ?
Excellent complete and comprehensive good job
Thank you! Do share ahead with your friends as well 😇
Wonderful video .good effort .thanks
Thanks for liking
Sir, as usual the video is very informative and useful.
I have a doubt regarding PPF.
If someone investing 1 lac per year for 15 years. Can he withdraw all these 15 lacs plus interest on the maturity of PPF account i.e on 15th years. Or each 1 lac has 15 years maturity period?
The account matures in 15 years. One can withdraw the balance in the account at the end of 15 years.
An amazing session on PPF
Thank you!
Very much educative. Crystal clear explanations. Thank you/
You're very welcome!
Thanks for useful video. How government come to a certain % of PPF interest rate? I opened PPF in 2016 @8% & I thought it is fixed rate. Now after gaining knowledge I get to know it is dynamic. How to react to this? reduce allocation to PPF assuming future interest rates would be very less. How an existing investor plan this? I cannot afford CFP but I can do is hope you answer or cover this topic.
Time my friend. Always go for 30+ years. 8300 per month with current rate is 1cr as it is compound interest. Where you have only put 30l . The same game bank loan plays where you end up paying triple or even more if you take loan for 25-30 years.
Very nicely briefed. Thank q very much. Informative video.
Glad it was helpful! Thanks
Can we invest more than 1.5 in the same fy
Plz make a video on ITR Filing
IMHO PPF or any fixed returns scheme like FD etc should only be considered by someone having a big corpus and wants to diversify. These instruments don't even beat inflation. They offer no upside. The only benefit is the downside is capped, and you know for certain how much money you'll have at a certain point in the future. (Hint - over 30 years, you'll lose approx 30% of your money, adjusted for inflation.
I'm 32, I'm just building my corpus, and this is a senseless investment for me.
Mutual Fund SIP and Retail Equity investing are better ways.
Excellent explanation
Thank you
Well explained. Thank you. Sir , if we take loan, do we have to pay interest every month or is it yearly once .please help me ASAP.
Thanks. Sorry, we could not find more specifics on this
Very nice summary
Glad you liked it
IN MARATHI a book is written ''पी.पी. एफ्. ची कामधेनू'' .Shri Vinayak Kulakarni.
8:50 Is interest calculated from 5th or 6th of the month ? In different websites , it is mentioned differently. If I deposit lumpsum on 5th of April , say 11am morning , will it still be considered for that month's interest calculation or only considered next month ?
Dear Mr. Nath, on the interest calculation, if deposit on the 6th of a month, you mentioned that months interest will not be given. However, in the next month if I deposit on 2nd, will the interest of this month be compounded from the previous month and paid, if yes, do you really lose interest at all ?
Hi. You don't make interest for the first month - that's a loss.
For example - say you deposit 1000 rupees in month1 (on the 6th). No interest is paid for that month. So balance remains at 1000. In month 2 (paid on 2nd), you deposit another 1000 rupees. So 1000+1000 = 2,000 is which you get interest of say 20 rupees.
So what did you miss? By depositing earlier than 6th, you could have got 10 rupees interest in month 1 too. So the interest calculation in month 2 would have been on 1000+10+1000 = 2010.
So yes, you do lose money by not depositing it within the first few days. And as you rightly said, the compounding factor will ensure that this loss becomes bigger over time
Beautifully explained every point. Thanks.
Thank you
Very informative and explained in simple language.thank you very much .Azad H Popatia
Most welcome. Thank you for your kind words
Dear ETMoney, Have a question. I'm currently in NRI status and didn't open any PPF a/c. Planning to come for vacation and stay for 3 months in India and come back. During my vacation days Can I open PPF a/c & later continue as NRI?. What is the open option for me . Please assist
Hi. As far as we know, non-residents cannot open a PPF account. You might want to take a 2nd opinion with your nearest bank on this
Dear friend (ET Money)
Need your advise as I want to transfer my PPF account from one bank to another , the account is in maturity year and I plan to take extention with contribution .
Please advise , if it is safe or may result is n a problem ?!
What are the steps ?!
Where to initiate it from, the existing bank or the new desired bank ?!
Please note : existing bank is CBI and new proposed bank is SBI !!
Thanks for providing detailed information on PPF .
Most welcome
Very informative video. Wanted to know when an account, after attaining maturity, gets extended(with contribution) for a block of 5 years and thereafter no form H is submitted, would fresh contributions be allowed in the account ?
Thanks. Don't think fresh contributions are allowed. Pls check out: www.livemint.com/money/personal-finance/ppf-account-why-investors-should-be-aware-of-form-h-11571225519404.html
@@ETMONEY thank you so much
This is very useful information sir. Thank you
Most welcome
Excellent described,Thank you.
Glad it was helpful! Most welcome
Good presentation and well articulated. Wanted a confirmation on my following observation - assuming that I am withdrawing 1.5L from my savings account for investing in PPF then the the best day for investing in PPF is the 4th day of the month (and not any day between the 1st and 5th as is commonly understood) since the 1.5L which would be earning interest from the 1st to the 3rd of the month in the savings account while if put before that in PPF it would end up not earning any interest. Is my understanding correct ?
Thank you. I am not well-versed with bank savings account interest calculations, you might have to check this one with some banker.
My daughter’s account (opened at Bangalore) got discontinued 2-3 years back when I happened to be abroad. Opened in 2007, it may mature in
I am 68 yrs. my ppf account was closed around 15 yrs ago and money was withdrawn. Can i open a new pof account?
2- link to know list of banks opening ppf a/c
3- is it possible to change bank of my son’s ppf a/c?
Is it better to invest in NPS or to enhance the employee contribution to EPF account to the same amount??
How a premature closure during extention period will be treated.
If the interest rate is changed by government. Does it apply to already opened account also? Or the rate will not change until end of your maturity period.
Hi Vinit,
The rate is applied to already opened accounts also. So as the returns change, you will earn interest based on the new rate.
Hi... Your videos are very informative... Thanks for the research.
Could you please clarify how interest is calculated on PPF investment? I invest 10000 at 7.1 in year 1 and in year 2 say the int rate becomes 8, then will the 10000+int get int at rate 8, or this 10000 keeps getting 7.1 until maturity?
Thanks. The account balance will be used in calculating the interest for the year
Great video. Amazing efforts by ET Money team.
Thank you
Well detailed. Thanks for the video. One query for the non contributory extension account premature closure will help me.
Very well presented sie thank you .
You are most welcome, Prakash Raghunathan
Respected team thank you for valuable information.
Quick question: Currently PPF interest rates are on downward trend and will continue being the same considering India developing rapidly.
Would like to know your point of view whether we should invest in a 'Guaranteed Insurance Plan' (No ULIP, No Moneyback, No Endowment) which assures us a 6% p.a. return or go with PPF as currently it is providing 7.1% but in future it could reduce and go below 5% as well.
Also both provides the tax savings feature.
Looking forward to hear from you.
From what I've heard, there's no better guaranteed product than PPF.
Insurance plan always has some catch, and the returns are even lower than 6%.
Hello Team, in case of partial withdraws, does the tax benefit availed under 80 C in earlier years get revoked. Also is the withdrawn amount interest component taxable? Request for your guidance.
Just a quick question, is it possible to have separate PPF account for husband and wife, like minor is there a condition that the total should be 1.5 lakhs or can have more
Hi. Any Indian citizen can open a PPF account either in his or her own name.
Hi Etmoney, can one extend with a mix of with contribution and without contribution after maturity
For e.g. after maturity for the first 5 year block can it be without contribution however the next 5 year block can it be with contribution
Very informative
Thanks