Interested in PPF Account, Know Where to open PPF account | Bank or Post office for investment in PPF

A bank or Post office is good to open a PPF account.

Interest rates are falling down rapidly for various deposit schemes available in Bank as well as in the Post office. In Banks, the Fixed Deposit interest rate fall from 7.3 % to 5.50 % in the past 1 year, and more variation we can expect in this Financial year 2020-21.

Where to open a PPF account?

Is Bank or Post office good for opening a PPF account?

A bank is a good option or a Post office is a good option for opening a PPF account. The confusion will continue if you don't know the positive and negative points of a PPF account. First, let us discuss positive things, higher interest rate as compared to other deposit accounts, And the flexibility to transfer PPF account in between banks or from Bank to Post Office or from Post Office to any Bank.

The negative aspect is its maturity period which is 15 years. So you can invest the amount of money in your PPF account which you can hold for 15 years to get the full benefits of having a PPF account. Annual compound interest is applied to the PPF account.

So without wasting time you can open a PPF account in any Bank of in Post office. Here for the PPF account only I will suggest you choose any bank or where you are already having an account or having a savings account so that you can easily transfer money to your PPF account online.

So you can go for a PPF account in the Post office or a PPF account in Bank without worrying about the PPF account interest rate. Only you have to check for deposit options available there.

PPF account interest rate in SEP-2022 is 7.1 %.

A minimum deposit of Rs. 500 can be made in a PPF account. The maximum deposit one can make in his account is up to 1.5 lakh in a particular financial year. A maximum of 12 deposits can be made in the PPF account(Check with your Bank/PO for the latest update).

PPF account in Bank is always a good option. Rs. 500 to 1.5 lakh can be deposited in a Financial year.

Please note the option of opening a PPF account is also available if you are already having an EPF account. But maximum exemption of 1.5 lakh under section 80(c) can be taken in Income Tax Return(ITR) in a particular financial year.

DOP(Department if Post) interest rates: Post Office:



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