Can You Invest several lakh in PPF Account? TL;DR: Now you can make investments more than 1 lakh rupees on your PPF accounts, because of increased limit in 2014 budget. I had written this post month or two ago but couldn’t able to post. By the real way, PPF limit is raised in budget 2014 up to at least one 1.5 lakh, which means you can not make investments several lakh in your PPF account. So rest of debate in this post will regard this as the utmost limit in PPF. Some people go one more step and ask Now, can a father deposit amount in wife or son’s account to consider the full total more than 1 lakh?

Well, though you can also open up an additional PPF account with respect to a minor e.g. your daughter or son and you will subscribe any amount in multiples of Rs. 5/- of not less than Rs.500/- and not more than Rs.1,00,000/- in a yr in each of his account. A year for the intended purpose of the Scheme means a financial year (1st April to 31st March).

The deposits in excess of Rs. 1,00,throughout a year won’t bring any interest and can not qualify for the rebate 000 made. Another important things to consider is a tax benefit, AFAIK, you can deposit up to 1 1 lakh in each PPF account and earn tax-free interest but benefit under section 80C is available up to 1 1 lakh only. You can only just deposit up to at least one 1 lakh in your PPF account, any extra investment will not accrue any interest or tax advantage.

If you are the guardian of any PPF accounts opened in the name of small, e.g. daughter or son, you can deposit another 1 lakh for the reason that amount. This amount will earn both tax and interest advantage. PPF is a good long-term investment option, better than the fixed deposit even, but you got to know you skill and what you cannot with PPF. If you are not used to the finance world and want to learn more about PPF, please see my article 10 things you need to know about PPF.

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Our goal is to help you to be in a position to avoid these crippling mistakes. After all, wouldn’t you rather finish up with an increased probability of accomplishing the things you want to do instead of having to cut out things in retirement because you wished to avoid paying the cost of an advisor.

Please contact us to discuss how exactly we may be able to add value to your profile or schedule an appointment with a fee-only financial planner. There’s a companion podcast for this post available. You can listen through the player above, or subscribe to our podcast on iTunes, Google or Stitcher Play.