Return on PPF: If you are thinking of investing your hard earned money in a safe place and want to get more returns then you can invest in PPF.
In PPF (Public Provident Fund), you get more returns than Fixed Deposits. If you do not want to invest money in FD, then you can invest in PPF (FD vs PPF). Let us first understand the important things related to investing in PPF scheme.. Also Read: Punjab National Bank: Saving account interest rate will be cut from 1st september
Any person can open his PPF account. You can open a PPF account in any bank or post office. If a minor has to open a PPF account, then it can be opened in the name of any person. However, in a minor account when the child turns 18 years old, an application will have to be made to raise the status of the account from minor to major. After this the minor child can handle his own account later.
What is the minimum amount that should be in the account?
If you want to open a PPF account, then you have to fill at least Rs 500 in it. You can deposit a minimum of Rs 500 and a maximum of Rs 1.5 in any financial year. You can also take advantage of this scheme in the post office.
The benefit of tax exemption is available on the scheme
The amount invested in PPF comes under EEE category, which means that you get tax exemption on the entire investment made under this scheme. Apart from this, you do not have to pay tax on the interest earned in the scheme. The rate of interest received under this scheme varies every quarter.
Can a loan be taken against PPF?
Yes, you can also take a loan against PPF account. You can take a loan against PPF from one financial year to the end of the fifth financial year of the financial year in which you have opened the PPF account. If you are thinking of taking a loan against PPF, then you can take a loan up to 25 percent of the investment amount.
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