The Kalamkar

Public Provident Fund: If your PPF account has been closed then you can reopen it like this

Public Provident Fund is the most popular small saving scheme in the country. People invest heavily in this scheme of the government. If your PPF account has been closed, you can restart it, know how-

ppf account news

The Kalamkar News, Digital Desk - Government has started Public Provident Fund for employees . Employees contribute a certain portion of their salary into this fund every month.

In this scheme, the government gives the benefit of interest on the investment amount. The benefit of compounding interest is available in this scheme.

Apart from this, the benefit of tax benefit is given under Income Tax Act 80C . Through this scheme, employees can invest a good amount of money in 15 years. 

This fund is very helpful for continuing income after retirement. A minimum of Rs 500 and up to Rs 1.5 lakh can be invested in this fund.

If an investor does not make any contribution to this fund for an entire financial year, his account will become inactive. To activate the PF fund, the investor has to contribute at least Rs 500 in a year.

How to reactivate PF account (How to reactivate PF account)

  • To reopen the account, you will have to go to the bank or post office.
  • Now you will have to give a written application to activate the account.
  • Apart from this, you will have to deposit a default fee of Rs 50 along with the minimum amount per year. For example, if the PF account has been closed for 3 years, then you will have to pay a minimum of Rs 1,500 and a fine of Rs 150.
  • After this your account will be restarted.

Benefits of PPF

  • Any Indian resident can take advantage of this scheme.
  • In this the investor gets the benefit of flexibility.
  • You can take a loan of 25 percent on the amount deposited in PPF account.
  • Investors get the benefit of tax benefits in PPF fund.
  • PPF fund is directly managed by the government.