I am interested in opening a public providence fund(ppf) and i have some questions?



1. Im just 19years old and i dont have any income but i want to open the account so that i can deposit excess taxable income into it in the future, i want to open it now to reduce the waiting time, is it a good idea.
2. I don’t have a pan card in my name, can i still open a ppf account?
3. Can i partially withdraw from the ppf after 7 years, and if so upto what extent, do i have to pay it back?
4. I have an option to open the account in either a post office or a bank, which is a better option in terms of convince ?
even though i dont have a taxible income i will be able to pay 500/- a year… my plan was, like after 5 or 6 years when i get an income more than the limit thats non taxible i can put it in the ppf so that i’ll only have to wait for 10 years and get the tax free amount sooner even if the interest is less… is it a good idea?
even though i dont have a taxible income i will be able to pay 500/- a year… my plan was, like after 5 or 6 years when i get an income more than the limit thats non taxible i can put it in the ppf so that i’ll only have to wait for 10 years and get the tax free amount sooner even if the interest is less… is it a good idea?

One Reply to “I am interested in opening a public providence fund(ppf) and i have some questions?”

  1. Hi,
    Congrats for thinking in lines of a financially responsible individual. To answer your questions:
    1. An Excellent idea to open a PPF account.
    2. PAN card is not required initially as long as you are unemployed. However, it is a good idea to obtain a PAN card once one turns 18.
    3. No, you cannot withdraw any amount before the completion of 15 years for maintaining a PPF account. You may avail of a loan facility from the bank where you maintain the PPF account after 5 years of maintaining the PPF account operational. The loan amount and interest rate on the loan you may be eligible for is subject to certain terms and conditions. So, it is best to check with the bank.
    4. I am aware of near ones and acquaintances who operate their PPF accounts through both the Post Office and State Bank of India. Until now, I have observed no difference in the service or convenience factor at both these places.





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