Tax-free wealth growth with PPF

The minimum annual contribution required to maintain a PPF Account is ₹ 500. The maximum you can contribute in a financial year is ₹ 1.5 lakh. Contributions can be made in a lump sum or a maximum of 12 instalments per year.

The lock-in period of a PPF Account is 15 years and the Account can be extended in blocks of 5 years. After completion of 5 full years, partial withdrawals are allowed. 

Yes, contributions to a PPF Account are eligible for tax deduction under Section 80C, up to ₹ 1.5 lakh per year. The interest and maturity proceeds are also tax-free.

To apply, log into ICICI Bank Net Banking or iMobile, go to the section for PPF Account and follow the instructions. Your Account will be set up instantly.

If you miss a deposit, your PPF Account will become inactive. However, you can reactivate the Account by paying a penalty and depositing the minimum amount for each missed year.

The best time to make a PPF deposit is before the 5^th of every month. Interest is calculated monthly, on the lowest balance in the Account between the 5^th and the end of the month. Thus, depositing funds before the 5^th of the month ensures that interest is earned on the maximum balance. Please note that while the interest is calculated monthly, it is credited annually, at the end of the financial year.