Ppf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2017 1. is ppf account safe in any bank including privte banks ?

2..presently which option is better for fix deposits ...banks or post office ?

Adv. RAVINDRA KRISHNA

Adv. RAVINDRA KRISHNA (Expert)
Follow

24 May 2017 2. Post office Time deposits vs Banks' Fixed Deposits
Just like banks' fixed deposits (FDs), post office time deposits are meant for those investors who want to deposit a lump sum for a fixed period.
Time Deposits are of 1 year, 2 year, 3 year and 5 year tenures. The minimum investment should be Rs 200 and its multiples. The tenure of bank fixed deposits are flexible, with periods ranging from 15 days to 10 years but the minimum amount is as high as Rs 10,000.
In case of postal time deposits, the account can be closed after 6 months but before one year of opening the account. On such closure, the amount invested is returned without interest. If a time deposit of two or three years is withdrawn prematurely, post office will pay interest only for the completed year or years.
For example, a fixed deposit for two years is withdrawn after 20 months, interest will be paid only for the one full year completed. The depositor will lose interest for the remaining 8 months.
If a bank FD is closed before completing the original term of the deposit, banks have the discretion to charge penal interest. If a bank decides to charge penal interest, the depositor will be paid interest at a lower rate than that was contracted.
A postal time deposit fetches annual interest rates in the range of 6.25 to 7.5 per cent. A bank FD offers annual interest rates in the range of 3.75 per cent to 7.27 per cent. Senior citizens enjoy the privilege of earning higher interest rates on bank FDs, ranging from 4.25 per cent and 7.95 per cent.
In the post-office scheme your investment grows at a pre-determined rate with no risk as it is backed by the government.

Adv. RAVINDRA KRISHNA

Adv. RAVINDRA KRISHNA (Expert)
Follow

24 May 2017 1. Yes, PPF Account will be safe in any Nationalized bank or Private bank.