Public Provident Fund: How much cash can you deposit in a PPF account in a day?

By: |
Updated: June 24, 2021 1:07 PM

PPF is the most popular tax-saving investment due to sovereign guarantee, attractive rate of interest and tax benefits on investments, interest as well on the maturity amount.

Public Provident Fund, PPF, EPF, GPF, minimum investment in PPF, maximum investment in PPF, cash deposit in PPF accountAn account holder may deposit money maximum 12 times in his/her PPF account in a year.

The Public Provident Fund (PPF) is the most popular tax-saving investment due to sovereign guarantee, attractive rate of interest and tax benefits on investments, interest as well on the maturity amount. The tax exemption at every stage of investment provides PPF the privileged EEE (Exempt, Exempt, Exempt) status.

The benefits of EPF (Employees Provident Fund) are available to predominantly employees of private sectors and the benefits of GPF (General Provident Fund) are available to government employees under the old pension scheme, while PPF has a wider reach with its benefits available to the general public, including the employees of private and government sectors.

The Public Provident Fund also enjoys legal immunity and the amount available in the PPF account of a person can’t be attached to pay off liabilities through a court order.

However, a person may open only one PPF account for himself and one each for his/her dependent children, and the combined contribution by a person can’t exceed the maximum annual investment limit, which is currently Rs 1.5 lakh per annum.

Contributions made in PPF accounts are long-term in nature and the initial period of investment is 15 years. After maturity, an account holder may extend the limit any number of times for a block of 5 years with or without further contributions.

Forgot to deposit minimum amount in your PPF account? Here is what you may lose & ways to revive it

While the maximum investment limit is Rs 1.5 lakh in a financial year, a minimum annual investment of Rs 500 is necessary to keep a PPF account active.

An account holder may deposit money maximum 12 times in his/her PPF account in a year.

But how much amount may be deposited in cash in a PPF account?

“Practically online transfers are done to a PPF account. In case of cash deposit, post offices are accepting cash upto Rs 50,000 per day. Presently the cash deposit of more than Rs 1,50,000 is not being accepted by the PPF system in a postal PPF account,” said Sudhakar Sethuraman, Partner, Deloitte India.

However, there are instances that banks discourage the account holders from depositing cash in the PPF accounts even if the figures are Rs 50,000 or less.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1COVID-19: How fintech helps businesses survive amid shift in consumer priorities
2Why homebuyers want to invest in ready-to-move-in houses?
3Borrowing from loan apps – Know how to identify genuine fintech lenders