How to revive a discontinued PPF account? Reasons, resolutions explained

Minimum and maximum deposit for PPF account

A minimum of Rs 500 and a maximum of Rs 1.5 lakh per annum can be deposited every year in a PPF account at present. Deposits can be done maximum in 12 transactions. However, you must note that if you deposit more than Rs1.5 lakh in your PPF account per annum, the excess amount will neither earn any interest nor will be eligible for rebate under Income Tax Act.

Deposit for discontinued PPF account

The total deposit in a year, shall be inclusive of deposits made in respect of years of default of previous financial years.

Here is how to revive a discontinued PPF account

Discontinued account can be revived by the depositor before maturity of the account. The account holder must deposit minimum subscription fee i.e. Rs 500 plus Rs 50 as default fee for each defaulted year.

Here is how your PPF account shall become discontinued

In any financial year, if you have not made minimum deposit of Rs 500, then your PPF account shall become discontinued. It may also be noted that loan or withdrawal facility is not available on discontinued PPF accounts.

Steps to revive discontinued PPF account

However, for specific reasons, mentioned below, your PPF account can also be discontinued. We have also discussed how you can revive a discontinued PPF account.

PPF account lock-in period

Though PPF has a lock-in period of 15 years, you can make extension in a block of 5 years for tenures upto 20, 25 and 30 years.

PPF Scheme Interest Rate

The PPF Scheme, introduced by the National Savings Organization in 1968 was aimed at making small savings a lucrative investment option. PPF currently offers an interest rate of 7.1 percent.

Public Provident Fund Withdrawal

Public Provident Fund (PPF) is a 15-year investment scheme under which an investor enjoys tax exemption at the time of deposit, accrual of interest and withdrawal.