Public provident fund(PPF) is the safest investment available in the market for long time investment at least more than 7 years. Actual maturity of PPF is for 15 years and a person cannot withdraw his/her money completely before 15 years, but they can withdraw some amount partially after seven years from the opening of the account.
PPF gives the highest rate of interest in any investment, and RoI is always same with PF and VPF account, as these all are the investment plan from the government of India.
Why you should invest in PPF?
- Your money will safe in hand of Govt.
- PPF account is actually managed by India post(post office).
- A high rate of interest.
- Tax exemption under 80 C.
- Interest earned on PPF amount in non-taxable
- You can open your account at any time with minimum/subscription amount of 500 rupees.
- Within a financial year you maximum you could submit 150,000 rupees.
- Funds can be deposited to PPF account, only 12 times in a Financial Year.
- Premature closure is not allowed before 15 years, but you could partially withdraw after seven years.
- You can take a loan on this account after the 3rd financial year.
Where to open a PPF account?
PPF is a saving and tax saving scheme of GoI and managed by the post office of India. You could open PPF account with any post office or with any public or private banks.
for more details and current benefits of scheme you could visit Post-Office-Saving-Schemes | indiapost.gov.in