PPF Investment: You can open PPF account in any post office branch or bank branch. Apart from your own name, you can also open it in the name of children in case of a minor.
PPF Investment: Even a small investment can create a big fund. Public Provident fund scheme is a good option for this. This scheme is for all the people of the country. From child to elderly one can invest in this scheme. The biggest advantage of this investment with a lock-in period of 15 years is that it earns more interest than other investments. At present, the scheme is getting an interest of 7.1% per annum, which is much higher than bank fixed deposits. A fund of about Rs 3.21 lakh can be created in 15 years by investing only 1 thousand rupees a month in the scheme.
How much money will you get on investment of ₹ 2000?
Investment in PPF can start with Rs 500 per month. If you deposit only 500 rupees every month, then after 15 years you will have a fund of about 1.6 lakh rupees. At the same time, a fund of about Rs 6.43 lakh can be created in 15 years by investing Rs 2,000 per month. Let us tell you, the maximum investment limit in a financial year is Rs 1.5 lakh.
| Monthly Investment | How much will you get after 15 years | How much will you get after 20 years |
| 500 rupees | 1.6 lakh rupees | 2.65 lakh rupees |
| 1 thousand rupees | 3.21 lakh rupees | Rs 5.30 lakh |
| 2 thousand rupees | 6.43 lakh rupees | Rs 10.60 lakh |
| 3 thousand rupees | Rs 9.64 lakh | Rs 15.91 lakh |
Note: The calculation in the table is given as a rough estimate based on the current interest rate. The interest earned on PPF is reviewed every 3 months.
Account can be opened both at Post Office and Bank
You can open PPF account in any post office branch or bank branch. Apart from your own name, you can also open it in the name of children in case of a minor. But, as the caretaker, you will manage the account till he turns 18. As per the rules, a PPF account cannot be opened in the name of a Hindu Undivided Family (HUF).
5 years extension after maturity
The lock-in period or maturity period of 15 years on a PPF account is 15 years. But, even after this, you can continue with your investment. Meaning you get this facility in PPF that you can extend it for 5 years. You can keep the maturity amount for a total of 20 years. Investments can also be made during this time. However, 1 year before the completion of the maturity period, you will have to submit an application that you want its extension. It can be extended again for 5 years even after completion of 20 years.
Lock in period is 5 years
The lock-in period in the PPF account for pre-withdrawal has been kept at 5 years. Meaning money cannot be withdrawn from this account for 5 years after the year the account was opened. After completion of this period, pre-withdrawal can be done by filling Form 2. However, maturity withdrawal cannot be done before 15 years.
Tax exemption benefits
PPF comes under the category of EEE of tax. Meaning, the benefit of tax exemption will be available on the entire investment made in the scheme. Apart from this, the interest earned on that investment and the entire amount received on maturity is also tax free. Therefore, according to the long term benefits, PPF investment counts in the best option.
No one can confiscate PPF account
The PPF account cannot be seized by any court or order at the time of debt or other liability. In this case also this scheme is good and works.
Cheap loan is available on PPF account
Cheap loan is also available on the amount deposited in PPF account. But, there is a condition for this. You are entitled to take loan from PPF for a period of five years from the next year except the year in which the account is opened. If you have opened PPF account in January 2017, then you can take loan from 1st April 2018 to 31st March 2022. Loan can be availed up to a maximum of 25% on deposit.
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