Public Provident Fund (PPF) is one such scheme in which every Indian citizen can invest. Let us know about the interest and other features available in it.
New Delhi. Crores of employed people of the country get more than 8% interest by investing their salary in the scheme of Employees Provident Fund Organisation. However, those who do not have a job but still want to invest in any such government scheme, what is the option for them? Often this question remains in the mind of the common man. If you also want more interest and safe investment in a government-backed scheme like EPFO, then PPF is a great investment option for you.
Public Provident Fund (PPF) is one such scheme in which every Indian citizen can invest. This government scheme was first introduced to the public in 1968. This long term savings scheme offers better returns along with tax savings. Let us know about the interest and other features available in it.
Features of Public Provident Fund Scheme
- The minimum investment limit in this scheme is Rs 500 per year and a maximum amount of Rs 1,50,000 can be deposited.
- This scheme is for 15 years. However, after this the customer can extend it twice for a period of 5-5 years.
- The rate of interest in this scheme is determined by the government on a quarterly basis. The current rate is 7.10 per cent.
- Loan and withdrawal facilities are available subject to stipulated norms.
- Nomination facility is available in the name of one or more persons in this scheme.
Other conditions related to PPF account
- Any Indian resident can open a PPF account, including minors. Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open PPF accounts.
- The interest income in PPF scheme is completely tax free. Apart from this, income tax benefits are also available under section 88 of the Income Tax Act.
- In this scheme, the customer cannot deposit more than Rs. 1,50,000 per year. At the same time, the interest amount is paid every year on 31 March.
How to open PPF account?
PPF account can be opened by visiting the post office or branch of any nationalized bank or through online mode. PPF account can be opened in post office or any bank and it can also be transferred.
