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PPF: Public Provident Fund i.e. PPF is a savings scheme which is made available by the Central Government through some banks apart from the post office. In this you can invest minimum Rs 500 to maximum Rs 1.5 lakh every year.
New Delhi. If you want an investment which is risk-free and gives decent returns, then Public Provident Fund i.e. PPF can be a great option for you. PPF is one of the most trusted savings schemes in the country. This scheme is not only safe, but also provides a great opportunity for tax savings. You can open PPF account in post office or any bank.
Interest Rates and Tax Benefits
Currently, 7.1% annual interest is being given on PPF, which is decided by the government every quarter. The most important thing is that the interest received on it is completely tax free. Besides, tax exemption is also available on the investment amount under Section 80C i.e. this is a scheme of EEE (Exempt-Exempt-Exempt) category. Investment, interest and maturity amount – no tax on all three.
When and how can you withdraw money?
After completion of 15 years in PPF, you can withdraw the entire amount. However, partial withdrawal facility is also available after 5 years. Apart from this, you can also take a loan if needed. The maturity period in PPF is 15 years. However, it can be extended for 5 more years at a time.
Why is it a better option?
- Full government guarantee means zero risk
- Combination of tax saving and fixed returns
- A safe way to build a strong fund for retirement
PPF: special things
Minimum deposit: Rs 500 annually
Maximum deposit: Rs 1.5 lakh annually
Maturity period: 15 years
Interest rate: 7.1% per annum
Tax Benefit: EEE status under 80C
Loan facility: Available
Even though there are many investment options available in the market, PPF still remains the choice of crores of investors due to its stability, security and tax benefits. This is an ideal scheme for those who want safe and reliable savings in the long term.
After starting his career in print media, he has been working as a senior copy editor in AyraNews24x7Hindi for the last 8 years. Has been a part of the business news team for almost 4 years. Has experience of about one and a half decade in media. Bijan…read more
After starting his career in print media, he has been working as a senior copy editor in AyraNews24x7Hindi for the last 8 years. Has been a part of the business news team for almost 4 years. Has experience of about one and a half decade in media. Bijan… read more
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