Public Provident Fund (PPF) is a popular long-term investment and savings scheme started by the Government of India. It was introduced in 1968 to encourage individuals to create a retirement fund and accumulate wealth over time.
Public Provident Fund (PPF) is a popular long-term investment and savings scheme started by the Government of India. It was introduced in 1968 to encourage individuals to create a retirement fund and accumulate wealth over time.
This comprehensive guide will explore everything you need to know about the Public Provident Fund (PPF).
The Public Provident Fund is a savings scheme set up by the Government of India to encourage individuals to save for the long term. It is regulated by the Ministry of Finance and administered by designated banks and post offices nationwide. PPF provides individuals with a safe and reliable opportunity to invest and grow their savings for 15 years.
The Public Provident Fund (PPF) account is important in personal finance and long-term savings. Here are some key reasons why a PPF account is essential:
The key features of a public provident fund scheme (PPF Scheme) are listed as follows:
Interest Rate of PPF | 7.1% per annum |
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Tax Benefit | Up to INR 1.5 lakh under Section 80C |
Risk Profile | Offers guaranteed, risk-free returns |
Minimum Investment Amount | INR 500 |
Maximum Investment Amount | INR 1.5 lakh per annum. |
Tenure | 15 years |
Any person who wants to invest in a PPF account must be an Indian citizen. A person can have only one PPF (Public Provident Fund) account but can open another account in the name of a minor. HUFs and NRIs are not eligible to open a PPF account. But, if there is an existing PPF account in their name, it will remain active till completion.
You can get a wide range of benefits under the Public Provident Fund (PPF). Below are some of the benefits of a PPF account:
When considering investment options, it is essential to compare the Public Provident Fund (PPF) with other alternatives to make an informed decision. Let's compare PPF with some commonly considered investment options:
You can open a Public Provident Fund (PPF) account in two ways, i.e., online and offline. Below, we have explained both processes in detail:
Withdrawal from your PPF account is a simple task, but it is necessary to understand the rules and implications before taking any decision. Here are the details of withdrawal options in the PPF scheme:
PPF account offers two types of withdrawal: partial withdrawal and maturity withdrawal. In the below section, we have explained both the withdrawal processes in details:
The Public Provident Fund (PPF) is an excellent investment option for individuals looking for long-term savings, stable returns and tax benefits. With its attractive interest rates, tax exemptions and flexibility in deposits and withdrawals, the PPF scheme offers a safe and reliable investment opportunity for both salaried individuals and self-employed professionals. By investing in a PPF account, you can achieve financial stability, build a retirement corpus and enjoy tax benefits. Avail this government-backed investment scheme and start the journey towards financial security and wealth creation with PPF. Start investing today and secure your future tomorrow.