Question: What Will Happen If PPF Account Holder Dies?

Is PPF better than LIC?

The Public Provident Fund tends to provide a far superior rate of returns compared to an LIC policy like Jeevan Anand.

What you should do is invest in the PPF and take a term policy online, which is cheaper and faster.

In the term policy you do not get your money back, but, you are provided with solid insurance..

Is SIP better than PPF?

SIP investment in mutual funds are ideal for all, short term, medium term and long term goals. They are ideal for wealth creation and fulfilment of goals. A PPF is ideally suitable for only long term investments of 15 years or more. … SIP investment in mutual funds do not have a defined lock-in period.

Is it necessary to pay PPF every year?

It is recommended that one must invest in PPF before the fifth of every month in case of monthly contributions (in case of cheque, ensure that the payment to PPF is received). … In case lump sum investment annual investments, it is advisable to do it before April 5 of every financial year.

How do I claim PPF after death?

Here’s how to go about filing a claim.Form. Nominees or the legal heir of the deceased PPF subscriber are required to submit a duly filled Form G to the bank or post office where the the PPF account was held.Nomination registered. … No nomination. … Amount up to Rs 1 lakh. … Process. … Points to note.

Can PPF account have nominee?

While opening a PPF account, you will not find the provision for nomination in the application form. The nomination has to be filed in a separate form (Form-E) to avoid any legal hassles for the nominee later on.

What happens if you dont pay PPF?

Penalty for not depositing minimum amount In a PPF, if you do not invest a minimum amount of Rs 500 in a single financial year, your account will become inactive. You can revive the account by paying a penalty of Rs 50 (for every financial year your account has been inactive) and minimum deposit amount of Rs 500.

Can I have 2 PPF accounts?

“PPF rules are very clear that one can’t open more than one account if someone still opens a second account, he or she will not be eligible for any interest on invested amount,” said Rajan Pathak, Mumbai-based independent financial advisor. “The second account will have to be closed down.

How much I will get in PPF after 15 years?

1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

Can husband deposit in wife PPF?

Ankur Choudhary, Co-Founder and CIO, Goalwise replies: “Yes, your wife can have a PPF account in her name and you can invest Rs 1.5 lakh on her behalf. Under the income tax laws, income from money given to a spouse is clubbed with the income of the giver.

When I can close my PPF account?

As a rule, one can fully withdraw the PPF account balance only upon maturity i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.

Can someone else deposit money in my PPF account?

There is an ample number of ways, through which an individual can deposit money to his account, or to the PPF account of somebody else, (including a child, spouse and member of the family). … You can deposit money in a given PPF account for a maximum of 12 times during a given financial year, via any of these means.

What can I do after PPF maturity?

The options you have with regards to your PPF account, once it matures- you can withdraw the entire balance and close the account or extend it for five years with or without making further contributions. The extension in blocks of five years can be done indefinitely.