Public Provident Fund (PPF) is a very popular savings instrument in the country. A large section of the salaried people invest in this fund. There are many reasons for this. These include Exempt, Exempt and Exempt status to this fund, relatively higher interest rate and income tax exemption. At present, interest of 7.10 percent is being available on PPF. Traditionally, PPF account can be opened in banks or post offices. However, in this time of proliferation of online banking, one can open a PPF account online as well.
Many banks provide facility to open PPF account online
Leading private banks like HDFC Bank, Axis Bank and many government banks including Canara Bank allow investors to open PPF accounts online. For this you can visit the official website of your bank. Apart from this, you can also use the mobile app.
Interest on PPF Account Deposit
You look at the returns the most before investing in any fund. The government fixes the rate of interest for Public Provident Fund (PPF) before every quarter. At present, interest is available on PPF at the rate of 7.10 percent. This rate has been maintained from July, 2020.
Tax Deduction on PPF
If you invest in this fund, you get income tax exemption under section 80C. Apart from this, the interest earned on the amount deposited in this fund is completely tax free. Similarly, the total amount received on maturity is also tax free.
It is very important to have information about this. An individual can invest a maximum of Rs 1.5 lakh in this fund in a financial year. The maturity period of this fund is 15 years. After 15 years of continuous contribution, you can get the investment tenure extended by 5-5 years.