In PNB PPF, you can open an account in your own name or as a guardian of a minor. Under this scheme, a maximum of Rs 1.5 lakh can be invested in the account in a year and a maximum of Rs 12,500 per month.
New Delhi. The time for filing annual income tax return is now in the final stage. In such a situation, if you want to earn big profits along with saving tax, then Punjab National Bank is giving this facility to its account holders on PPF account. Anyway, in the era of Corona epidemic, Small Savings Scheme is being considered as a better option for investment. By investing Rs 500 per month in PPF account of PNB, you can create a huge fund. PNB also offers the facility of tax free returns on PPF account with attractive interest.
Can invest up to 1.5 lakh annually
In PNB PPF, you can open a PPF account in your own name or as a guardian of a minor. A maximum of Rs 1.5 lakh can be invested in this account in a year and a maximum of Rs 12,500 per month. Apart from fixed deposits ie FD, this scheme gives good returns as compared to many small savings schemes. The maturity period of PPF is 15 years, but you can extend it for another five-year period. There will be no interest and no tax benefit on the amount above 1.5 lakhs.
You can also avail tax free facility
Actually, PPM is a central government scheme. This is the reason why it guarantees low risk along with better returns. Along with this, they also get the benefit of tax exemption under section 80C of the Income Tax Act. Under this scheme, you can open the account in Post Office, SBI, Canara Bank, ICICI Bank and HDFC as well.
This is the interest rate
The rate of interest on PNB PPF account is currently 7.1 percent. The interest under this scheme is paid every year in the month of March.