PPF Benefits: Under this scheme, investors are getting 7.10% interest annually, which is more than fixed deposit schemes of many big banks. Through investing in this scheme, you can prepare capital for the future. Apart from this, tax can also be saved on the spot.
In this era of Corona, the rate of interest of all investment schemes has been drastically reduced. However, PPF ie Public Provident Fund Scheme is a safe and good return scheme for the investors. Currently, investors are getting 7.10% interest annually under this scheme, which is higher than the fixed deposit schemes of many big banks. Through investing in this scheme, you can prepare capital for the future. Apart from this, tax can also be saved on the spot. Account can be opened under this scheme from any commercial bank of the country including State Bank of India. Let’s know, what are the advantages of investing in PPF…
In PPF, you can invest from Rs 500 to Rs 1,50,000 per year. The PPF account maturity limit is 15 years, but it can be extended for a maximum of 5 years if applied on behalf of the account holder.
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– Under this scheme, the interest rate is fixed by the central government every quarter. Currently, interest in PPF is getting 7.1% per annum. Due to the recession, this interest rate has come down slightly, while in 2019 itself, interest was getting 7.9% on the amount deposited in PPF.
– You can get exemption under Section 88 of Income Tax Act on investment in PPF. Not only this, you can also get a loan on the amount deposited in PPF.
– You can apply for a loan from the third year to the seventh year. From the third year, you can get a maximum loan of 25% of the deposit in two years. Earlier, the account holder had to pay 2 per cent interest to take a loan on PPF, but the government has reduced it to one per cent for 2020.
– For PPF account you can nominate any one or more people. Not only this, the plan holder can also decide the nominee’s share on his behalf.
– If you are shifting from one city to another, then you can easily transfer PPF account also. There will be no charge for this.
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