PPF- A doubt regarding deposit.

Can someone here please clear a doubt regarding PPF? We can make a deposit in multiples of 5 ranging from 500 to 70,000, right? My doubt is should the amount being deposited be the same, that is, is it a fixed one? Or can we deposit varying amount. For e.g. if I had opted for depositing 50,000 per year and somehow is not able to pay that much this year can I pay just 500 so that I won’t default payment. Or should I pay 50000? Also can I opt a half yearly option or are there only monthly and yearly options available?

Ami,

I am not sure (100%) but this is the knowledge i have. 70000 is the upper limit. any thing above will be returned back.

in the same way, a minimum of 500rs should be invested for the year(that is 1 deposit is mandatory for the year) . you can regularise the account later with some penality too. but you need to atleast deposit 500 to not default.

you can make upto 12 deposits for a year which means you can opt monthly.

Hope this helps.

Hi,

Shanthi is right - your yearly deposit can vary between Rs. 500 and Rs.70,000. But to keep the account active, you need to make a minimum deposit of Rs.500 every year.

You can pay any time of the year, so it allows you to be flexible in getting the amount ready.

Cheers,

Sowmya

Dear Shanthi, Soumya thanks for the fb. I know about the lower and upper limit and the installments how we can pay. The penalty for defaulting payment is 50Rs. per year of default. But my doubt is if I opt to deposit 50000 per year and the next year for some reason if I can’t deposit that much amount, and can do only a 1000 or 500/- can I do it? Is it only necessary that we have to deposit some amount in multiples of 5 with min of 500/- or the fixed amount for which we subscribe PPF ?

ami,

I think the defaulting penalty is rs.100 and not 50 ?? and i also think you can pay rs.500 the minimum amount in that year. i did understand your question and thought i had explained the same. did i confuse you. . and if you do not even pay the required amount in a year (Rs.500) you can still revive the account by paying the arrears along with the penalty.

Hi Ami,

In PPF, the amount you deposit per year is flexible. One year you can deposit 50,000. Next year, if you are not able to deposit huge amount, you can deposit a minimum of Rs.500 so that it doesnt default for that year.

In a year, the maximum number of deposits you can make is 12. The amount you deposit is upto you. Minimum is Rs. 500 and total of the 12 deposits should not exceed Rs.70,000. If you wish to deposit more amount, you can take one account in your name, one account in your DH's name, etc.

Does this answer your query?

-Lakshmi

Originally Posted by amihere

But my doubt is if I opt to deposit 50000 per year and the next year for some reason if I can’t deposit that much amount, and can do only a 1000 or 500/- can I do it? Is it only necessary that we have to deposit some amount in multiples of 5 with min of 500/- or the fixed amount for which we subscribe PPF ?

Yes, you can deposit only rs. 500 or 1000 for that year if you are unable to deposit more than that. There is no fixed amount while subscribing to PPF. That way it is very flexible.

-Lakshmi

Shanthi, I was yeah a bit confused from your post whether you were saying it is possible or not. Is it 100/- last Saturday when I went to SBI for the same a notice there said it as 50/- and in some sites too it was given so. May be they have increased it now.
Lakshmi thank you very much for clearing my doubt.