What is the difference between PPF and savings account?

The PPF account offers a higher return than savings bank accounts. The catch here is that the investments in PPF accounts are lock-in for a period of 15 years. One can invest a maximum of Rs 1,50,000 a year or Rs 12,500 a month. A minimum investment amount of Rs 500 should be compulsorily made in a year.

What is public provident fund account?

Public Provident Fund (PPF) is a retirement savings scheme offered by the Government of India with the aim of providing a secure post-retirement life to everyone. The minimum deposit you must make in the account per financial year is Rs. 500 and it can go up to Rs. 1.5 lakh.

Why does an individual need a savings account?

To Help With Unexpected Expenses And when the unexpected happens, such as accidents, sickness or a furnace dying, you need money to pay for the unplanned bills. Having a savings account makes the money easily available to you. Thus, your savings account also serves as an emergency fund.

Is PPF a savings account type?

Being a tax saving option, you will consider depositing some money into our public provident fund (PPF) from your bank account by making use of the online transfer facility.

Can I deposit different amount in PPF account every year?

There can be multiple deposits as well so that the total amount deposited during a given financial year does not cross the Rs. 1.5 Lakhs limit. An individual can deposit money into a PPF account, a maximum of 12 times, during a given financial/fiscal year.

Why PPF is better than NPS?

National Pension Scheme (NPS) and Public Provident Fund (PPF) are both government-backed retirement saving schemes….Key differences between NPS and PPF.