Saving Scheme: PPF public provident fund interest rate returns tax savings, know other benefits

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The minimum time period of a PPF account is 15 years. This is to say that once an account is opened, the investment is locked for 15 years.


Saving is necessary to protect the future. There are many schemes for saving on which interest is being paid by the government. One of these schemes is also the Public Provident Fund (PPF). Today we are giving you detailed information about PPF.

You can open an account for Rs 100: If you want to open a PPF account, then for this you will have to spend only Rs 100. At the same time, if you talk about investment, you can make at least 500 rupees in any one financial year. At the same time, a maximum of 5 lakh rupees can be invested. The amount can be deposited in a maximum of 12 installments per annum or in lump sum.

The minimum time period of a PPF account is 15 years. This is to say that once an account is opened, the investment is locked for 15 years. Account holders can extend the time period of their account for another 5 years.

Interest is paid by the government on the amount deposited in this account. The interest rate on PPF is 7.1 percent. Although the government reviews this interest on a quarterly basis, it may also change.

Generally after opening a PPF account, the loan can be availed from Third Financial. Withdrawals are allowed each year from the seventh financial year from the year of opening the account. The PPF account is supported by the Government of India

This is the reason that things like Risk Free, Guaranteed Return and Capital Protection are available. You can open this account at a slight risk. The PPF account can be opened in a post office or bank by someone else in his own name and on behalf of a minor.


There is also facility to transfer PPF account. It can be transferred from one post office to another office or from post office to bank or from any bank to another bank. There is no tax on the amount invested in the account as well as the interest received on it. In some circumstances, after completion of 5 years, you can choose to close the account.

 

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Article first Appeared on Informalnewz

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