Dear Kiran
Public Provident Fund Account can be opened by any adult in his/her names or as guardian of a minor. Such account can be opened in any Head Post-Office, G.P.O., any Selection Grade Post Office, any branch of the State Bank of India and selected branches of other Nationalized Banks.
Minimum Rs.500/- maximum Rs. 70,000 /- in a financial year Deposits can be made in lump sum or in12 monthly installments.
Deposits are payable on maturity after 15 years along with interest at the rates declared by the Government from time to time. The rate declared w.e.f.1-3-2003 is 8% per annum compounded annually.
VPF is a fairly simple investment idea to understand. Apart from contributing the normal 12% of your basic pay, you may choose to put in an extra, say 10% of your salary into the same account. What’s more, you are getting a promised, risk-free annual return of 9.5% for the extra money that you put in. No other risk free investment vehicle gives you this kind of a return. But remember, your employer’s contribution will be limited to the mandatory amount; he will not match your voluntary contribution.
Hope this answers your query .
Kirti