Public Provident Fund also known as PPF is a high yield small savings scheme backed by the government. The interest on PPF account is 7.1 percent per annum. You can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a PPF account in a year.
Post Office Public Provident Fund: We save according to our resources and needs and invest our savings. There are various types of savings schemes in the market. By the way, most people turn to the stock market for investment. But the condition of the market is bad. In such a situation, people rely on government savings schemes.
The most popular savings scheme at this time is Public Provident Fund i.e. Public Provident Fund. The special thing about PPF is that there are many benefits of investing in it.
You can open a PPF account in your nearest bank or post office. Good interest is available on this account as well as tax savings are also there.
Public Provident Fund
Public Provident Fund also known as PPF is a high yield small savings scheme backed by the government. The objective of this scheme is to create a large corpus for the investors after retirement. An Indian individual can open only one PPF account in a bank or post office. Investment in PPF is a safe option. It guarantees attractive returns. If you invest regularly in this scheme, then you can make a good wealth through PPF in a few years.
The interest on PPF account is 7.1 percent per annum. Interest is calculated on the amount deposited in the account between the end of the fifth day of every month and the end of the month. Interest is credited to the account at the end of every financial year.
How much you can invest
In PPF account, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. At present, the interest rate on PPF is 7.1 percent. The special thing about this scheme is that the money invested in them, the interest income and the entire corpus are tax free.
15 Years Investment
The tenure of Public Provident Fund is 15 years. The investor has to invest in it for 15 consecutive years. After 15 years, this account can be extended for 5 years.
Tax Benefit
Money deposited in PPF account can claim exemption under section 80C of the Income Tax Act. The interest income earned on this account is also completely tax free. No tax is levied on the amount received on maturity of the account. Thus with investment rebate, interest waiver and maturity discount, PPF account has become the best tax saving investment option in India.
