By investing in Public Provident Fund, you can accumulate a huge fund for yourself. You can start investing in this scheme with Rs 500. Along with this, the person investing in this scheme also gets tax exemption.
Public Provident Fund (PPF) is one of the popular Small Saving Schemes in the country. The government is paying interest at the rate of 7.1 percent on the amount deposited in PPF. By investing in this scheme, you can get excellent returns. A large number of people have invested in this scheme because the Central Government takes the guarantee of this scheme. If you are looking for a scheme to invest these days, then PPF can be an option for you.
Can start with Rs 500
You can start investing in PPF with just Rs 500. At the same time, you can invest a maximum of Rs 1.5 lakh in this scheme in a financial year. You can deposit the investment amount in installments or in lump sum. No interest is earned on deposits exceeding Rs 1.5 lakh in a financial year. At the same time, this scheme is also very popular in terms of tax exemption. By depositing money in PPF, you can take advantage of tax exemption along with better returns.
The scheme can be carried forward after maturity
Under Section 80C of Income Tax, you can avail tax exemption on investment in PPF. The maximum limit for this is Rs 1.5 lakh. The interest received on investment in PPF and the amount received on completion of maturity, all three are completely tax free. Investment in PPF has to be made for 15 years. If you want to continue even after maturity, then in such a situation you can extend the PPF account for 5-5 years. For this, you have to apply one year before maturity.
How much money can be withdrawn?
With this scheme with maturity of 15 years, you can withdraw 50% amount during emergency. But for this it is necessary that the investment period should be completed by 6 years. After operating the PPF account for three years, you can take a loan on it. Loan facility is available from 3rd year to 6th year of account opening.
You can become a millionaire by saving Rs 416
You can become a millionaire by depositing little money in this government safe scheme. The formula is simple. By adding only Rs 416 daily i.e. Rs 1.5 lakh annually, you can raise more than Rs one crore in 25 years on the basis of the current interest rate of 7.1%. You can verify the figure yourself with the help of PPF calculator.
Account can also be opened in the name of children
You can open PPF account in almost all government and private banks of the country including post office. For this it is necessary to be an Indian citizen. You can open PPF account in the name of minor children, but for this it is mandatory to have a guardian. Earnings from the child’s account are added to the parent’s income.
