Investing in Public Provident Fund (PPF) is considered the safest option today. There are many benefits of investing here and the biggest advantage is that investing in PPF gives tax exemption. Also, investing in PPF also reduces risk. So let’s know the advantages of investing in PPF.
No risk on investment in PPF
For those who do not come under the ambit of EPFO, investment in PPF is the most safe and beneficial investment. Since PPF account gets the protection of the government, there is no risk of investment here. There is sovereign guarantee on the interest earned, which makes it more secure than the bank’s interest.
Higher interest rate on investment in PPF
The rate of interest on investing in PPF has always been 7-8 percent. The government keeps revising the interest rate on PPF account periodically. This is the reason that the interest rate is 7.1 percent, it is compound interest, so it is said that PPF account gives more interest than fixed deposit of banks.
Loan facility on PPF account
Those who invest in PPF account also get the facility of loan. This is especially beneficial for those who want to take a short-term loan.
Tax saving
Those investing in PPF get tax exemption under section 80C of income tax. Under which deduction up to Rs 1.5 lakh can be taken on the amount invested. Apart from this, tax rebate is available on both the interest and maturity amount received from PPF.
