BANKING AFFAIRS

Detailed explanation-1: -Investment limits: PPF allows a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh for each financial year. Investments can be made in a lump sum or in a maximum of 12 instalments. Opening balance: The account can be opened with just Rs 100 a month.

Detailed explanation-2: -While the minimum investment for PPF is Rs 500, the maximum investment amount is capped at Rs 1.5 lakhs per year. At the current rate of 7.1% p.a., you can receive up to Rs 40.86 lakhs if you invest Rs 1.5 lakhs annually.

Detailed explanation-3: -What happens if you invest more than Rs 1.5 lakh? “Amount beyond Rs 1.5 lakh cannot be deposited in the PPF account as the transaction will be rejected at the time of transfer. Thus, the question of excess amount doesn’t arise.

Detailed explanation-4: -More About PPF Interest Rates You are allowed to make only 12 transactions in a calendar year, and the maximum amount you can deposit in your PPF account cannot exceed 1.5 Lakh in a year.

Detailed explanation-5: -The maximum amount that you can invest in your PPF account in a financial year is Rs. 1.5 lakh. Any amount beyond that will not earn any earning interest and would not be eligible for deductions under Section 80C of the Income Tax Act, 1961. Read more.