Axis Bank, India’s third-largest private sector bank PPF accounts offer several benefits….check rates here

Feb 12 2019 05:27 PM
Axis Bank, India’s third-largest private sector bank PPF accounts offer several benefits….check rates here

Axis Bank, India’s third-largest private sector bank by assets, offers the facility of Public Provident Fund (PPF) account under which an individual can claim tax benefits of up to Rs 1.5 lakh. A huge proportion of the salaried class individuals and middle-class families tends to choose an investment which can also help them in saving taxes. Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension Scheme (NPS), National Savings Certificate (NSC), Atal Pension Yojana (APY) and tax-saver Fixed Deposits (FD) are some of the most preferred tax-savings options in India.

 Axis Bank Public Provident Fund (PPF) eligibility

 All the resident individuals are allowed to open Axis Bank Public Provident Fund (PPF) account on their behalf and on the behalf of a minor. A person can open only one Public Provident Fund (PPF) account in their name and no joint Public Provident Fund (PPF) accounts are allowed.

 Non-resident Indians (NRIs) are not eligible to open the Axis Bank Public Provident Fund (PPF). However, a resident who becomes an NRI during the 15 years' tenure prescribed under the Public Provident Fund scheme may continue to subscribe to the fund until its maturity on a non-repatriation basis, Axis Bank said.

Axis Bank Public Provident Fund (PPF) rates

 According to the present structure regulated by the Government of India, Public Provident Fund (PPF) account offers an interest rate of 8 per cent. The interest is calculated on the lowest balance between the close of the fifth day and the last day of every month.

 Axis Bank Public Provident Fund (PPF) tax benefits

 Axis Bank Public Provident Fund (PPF) offers unique tax benefits. Public Provident Fund (PPF) account falls under the ‘EEE’ category which implies, an individual can claim a tax deduction at the time of investment and the interest earned and the amount withdrawn at the time of maturity are tax-exempt.

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 Axis Bank Public Provident Fund (PPF) deposits

 In Axis Bank Public Provident Fund (PPF) account, an individual can start with a minimum of Rs 500 and a maximum subscription amount of Rs 1.5 lakh in a particular financial year, as per the present convention prescribed by the government. After the minimum investment of Rs 500, the subscription can be increased in multiples of Rs 5.

 The deposits in Axis Bank Public Provident Fund (PPF) can be of one lump sum amount or easy instalments not exceeding 12 instalments in one financial year. Please note, the amount deposited in the Axis Bank Public Provident Fund (PPF) in excess of Rs 1.5 lakh shall neither be entitled to interest under PPF scheme nor be eligible for tax benefits.

 Axis Bank Public Provident Fund (PPF) tenure

 Axis Bank Public Provident Fund (PPF) comes with a lock-in period of 15 years. Following the completion of 15 years, the PPF account can be extended further in blocks of 5 years each for any number of blocks. The extension can be with or without contribution.

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 Axis Bank Public Provident Fund (PPF) premature withdrawal

 Conventionally, premature withdrawal is not allowed for Public Provident Fund (PPF) accounts. However, the amount can be withdrawn in case of the death of a customer, their nominee /legal heir can also close the account by submitting the required documents in case of death.

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