Shall I open PPF account now or after 3 years?

POSTED BY Mr.Nilesh ON January 12, 2014 10:00 pm COMMENTS (7)

Dear all,

My topmost goal is to buy a flat within 3-4 years.For this i am saving money through RD & FDs only.

I want to open PPF account,i am in dilemma

1. to open PPF account now & deposit Rs500  to keep it alive & after purchasing flat start actual investing in it


2. open PPF account after purchasing flat

pls suggest me.

thanks in advance!

7 replies on this article “Shall I open PPF account now or after 3 years?”

  1. ashalanshu says:

    Dear Viplav, I appreciate your honest sharing. Congratulations for reaping the rewards of your hard work.



  2. viplav says:

    I am not 32 and bought flat around age of 28. This is how i managed

    Besides regular saving, i tried to maximize the tax saving component.
    My target date was around 3 years when i started saving, with parents looking after day today expenses, my saving percentage was high.

    Since minimum period of tax free is 3 years(but risky MF), i invested partly (30,000) in Tax saving MF; 50,000 in NSC/tax saving FD, 5,000 in PPF (if you are wondering where is 15,000 it was taken care of by way of term insurance and PF). This continued for 3 years

    I was able to enough amounts for down payment from tax saving and more importantly other savings, for down payment by the end of three years.

    Now the fun part, all those 5 years FD/NSC matured after possession was taken, so all this money was going to bank towards repayment. I learned that if you prepay early, you save huge on interest.

    My position today, my 20 years loan tenure is now 8.5 years.

    So yes do open that PPF, invest 5 to 10K every year, do not but any high end mobile, try not to buy vehicle. I know it’s hard, but it’s worth it.

    Best of luck.

  3. Debojyoti Das says:

    Mr. Nilesh,
    If your goal is to buy a house and that is in your priority list, i would say, don’t open the PPF account now and put just Rs. 500/- as it doesn’t make much sense. As the investment is for 15 yrs., kindly try to make maximum use of the 1L. I initially opened with lesser amount, and now I am thinking of the mistake made by me. It is a very good saving instrument to use fully upto 1L and investment should be done during 02-05APR for maximum benefit.
    If you are retiring much after 15 yrs., don’t waste the time now by simply depositing 500/-.

    1. Mr.Nilesh says:

      Mr. Das,
      thanks for the suggestion,i totally agree with you.I am just 24 now and i will be retired after 28-30 years.
      thanks Mundhada & Rahul123 for your kind reply.

    2. rahul123 says:

      Hi Debojyoti,

      i am partially agree with you on this.

      1. PPF is best utilized when one invest the max amount corresponding to this (Rs. 1,00,000).
      2. You can always increase the Tenure after mandatory 15 year period, (in a block of 5 years)
      3. There is one topic about why it is good to start ppf (even if you dont require it now) is available on Please go through it.


  4. rahul123 says:

    Open PPF account now.

  5. mundhada says:

    Please open the PPF account now . It does not need much to keep it alive ( Rs 500 only ). You will always have opportunity to deposit more to PPF and take benefit of compounding should the opportunity presents itself in form of a surplus or a bonus or anything like that.

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