[Who_are_you]

Originally Posted by vibbs

Do you have to close it? Or can you continue with it?

As far as I know, account can be closed only after maturity period (i.e. 15 years). As per new rules, you can do premature withdrawal of 50% after 5 years with an interest penalty of 1%.


If you do not invest a minimum amount(500) in any year, then the account will be deactivated. To activate the bearer needs to pay ₹50 as a penalty for each inactive year. He/she also needs to deposit ₹500 each as each inactive year's contribution.

[ruzbehxyz]

Originally Posted by vibbs

Guys, I have a question. Sorry if directly not connected with the topic of this thread.
What happens to your PPF account if become an NRI?

Do you have to close it? Or can you continue with it?

As per Government of India notification in 2018, NRI's cannot open a PPF account but can maintain their PPF account till the end of 15 years, if it was opened earlier.

[bluevolt]

Originally Posted by ruzbehxyz

As per Government of India notification in 2018, NRI's cannot open a PPF account but can maintain their PPF account till the end of 15 years, if it was opened earlier.

Originally Posted by Who_are_you

As far as I know, account can be closed only after maturity period (i.e. 15 years). As per new rules, you can do premature withdrawal of 50% after 5 years with an interest penalty of 1%.
.

How it is treated for people who are on short-mid term onsite travel like in between 1-3 years?

[VKumar]

If I have to take maturity in 15 years itself, I'll instead pray to God to give me a daughter and open a Sukanya Samriddhi account.

EEE benefit, along with a PPF + 0.5% rate of return.

After having tried a lot of modern money market tools, now I have realized how good it can be to have 7.5% tax free annualized average returns than circulating all my funds in the small, mid, mixed and large cap stuff!

[deathwalkr]

My primary bank account is with ICICI and wanted to know if it was ok to start a ppf account through them itself.

I missed taking a Sukanya Samridhi account for my daughter who is ten now.

[Vikalp]

Originally Posted by deathwalkr

My primary bank account is with ICICI and wanted to know if it was ok to start a ppf account through them itself.

I missed taking a Sukanya Samridhi account for my daughter who is ten now.

I have opened a PPF account in December with ICICI via their netbanking platform as I too had a savings account with them. The process was straightforward involving just a few clicks and the account was created and visible within a day.

Also I am trying to open a SSY account with ICICI(the option is visible in the netbanking) but it throws an error saying no Young Star account found. Don't know what that means.

[kochup]

Originally Posted by Vikalp

Also I am trying to open a SSY account with ICICI(the option is visible in the netbanking) but it throws an error saying no Young Star account found. Don't know what that means.

I think ICICI mandates that there should be an account for your child.
Once that is created (which can be done by a quick visit to the bank), then the SSY creation can be done. However, there is still no option of bank transfer for SSY as per my understanding

[Vikalp]

Originally Posted by kochup

I think ICICI mandates that there should be an account for your child.

Thanks, didn't knew that. That might be the reason for the error.

[DigitalOne]

After 15 years, does PPF get auto-renewed or do we have to give a request for renewal for the next 5 years. I just realized that my PPF completed 15 years in August 2019.

The bank branch being some distance away from where I stay now, I have to take time explicitly to visit the SBI branch, and I have to complete the tax-investments now. Is it a good idea to transfer the investment amount to a PPF account which has completed 15 years?

[shashant]

Originally Posted by DigitalOne

After 15 years, does PPF get auto-renewed or do we have to give a request for renewal for the next 5 years. I just realized that my PPF completed 15 years in August 2019.

The bank branch being some distance away from where I stay now, I have to take time explicitly to visit the SBI branch, and I have to complete the tax-investments now. Is it a good idea to transfer the investment amount to a PPF account which has completed 15 years?

You have to fill an application form to extend it for the period of 5 years.

It only make sense to invest PPF amount in a different instrument, if post tax returns are greater than 8% or so.

[bluevolt]

In current lockdown scenario and uncertain times, is it suggested to invest in PPF for next financial year in April?

I as an individual prefer to max out my sec 80c limit in April (beginning of financial year) to gain maximum interest.

But in current situation, is it preferred to keep cash reserved and any investments be secondary now? What are views of other members here especially with respect to PPF.

[Chetan_Rao]

Originally Posted by bluevolt

...

...in current situation, is it preferred to keep cash reserved and any investments be secondary now? What are views of other members here especially with respect to PPF.

Do you have an emergency fund (preferably 6 months worth of living expenses)? If so, you really shouldn't worry about cash-flow at this point.

If it's a stretch in normal times - I mean if it needs you to adjust elsewhere for a few months to max this out upfront in April - it's best to potentially break it down into installments in the current situation, or consider holding off for a few months (at the expense of interest you'd make on that amount for the new FY), and invest in Q2 or later.

[bluevolt]

Originally Posted by Chetan_Rao

Do you have an emergency fund (preferably 6 months worth of living expenses)? If so, you really shouldn't worry about cash-flow at this point.
.

Not an issue about emergency fund but I am sitting under heavy losses from my equity/MF holdings. I am not sure when or if they will recover.

Not sure if locking money under uncertain times will be a good idea!

[Chetan_Rao]

Originally Posted by bluevolt

Not an issue about emergency fund but I am sitting under heavy losses from my equity/MF holdings....

Welcome aboard the ship!

Seriously though, don't get both mixed up. If cash-flow isn't an issue, don't make long-term financial decisions based on short-term panic.

Look at it this way. Financial systems work on the assumption that not everyone will withdraw their holdings at the same time. If it ever gets to the point where liquidity becomes critical, it won't matter where our money is stuck because none of us are getting it in a hurry.

Keep calm, don't fret over current state of your long-term investments, just focus on keeping reasonable cash flow (6 months worth is a decent number), and don't consider hoarding every penny to your name expecting doomsday around the next corner.

It becomes a self-fulfilling prophecy, because every person freaking out and running for the hills causes a chain reaction and precipitates the exact situation you're trying to avoid.

[bluevolt]

PPF intersest rates reduced from 7.1% to 6.4%.

Worst thing that can happen for salary class. I don't where this government is heading to.

Meanwhile, I have noted that interest has not been credited yet for my PPF account. Usually it is there on 31st March every year! Any pointers?