PPF account: Public Provident Fund is a popular scheme. Many people invest in this scheme to save income tax and accumulate a large fund in the long run. Currently this account gives an interest of 7.1 percent. If you want to invest in PPF. you can open an account in a post office or bank. But before investing in PPF. you must know the rules related to it. which many people are not aware of.
Cannot open more than one account
Like all schemes, you do not get the facility to open more than one account in PPF. If by mistake 2 PPF accounts have been opened for you, then the second account will not be considered a valid account. Till the time both the accounts are not merged. interest will not be available on it.
No option of joint account
In all other schemes, you get the facility to open a joint account, but this facility is not available in PPF. However, you can definitely make multiple nominees in it and can also decide their different shares. If the account holder dies due to any reason. then the nominee has the right to withdraw that amount.
Possibility of change in interest rate
Talking about the interest rate of PPF, its interest rate also keeps getting affected with time. From April 2019 to June 2019, its interest rate was 8 percent, after which it was reduced to 7.9 percent and then in January-March, 2020 it was reduced to 7.1 percent. Since then, this interest rate has remained at 7.1 percent. If this interest rate decreases further in the coming time. then people will have many options giving better returns than this.
Maximum limit of investment
The maximum limit of investment in PPF is Rs 1.5 lakh per annum. If your salary is very good and you want to invest more in this scheme. then you cannot do this. In such a situation. you have to look for other investment options.