Sushmita Goswami | Mar 10, 2022 |
Public Provident Fund (PPF) is one of the most popular investment plans for investment. Nowadays people like to invest the most in this plan. People get two types of benefits by investing in this plan. First, it gives very good returns. The other advantage is that it is absolutely risk-free investment. The unique feature of this plan is that, in addition to investing in it, you can invest in it in the form of a systematic investment plan (SIP). You can deposit a maximum of 1.5 lakh rupees in a year.
The interest rate on this scheme is higher than the interest rate on FDs or RDs, which means that you can earn large returns by depositing money in small amounts every month. Even so, there is no tax on interest and maturity income.
For instance, if you deposit 5,000 rupees in your PPF account every month, then it will be a total of 60,000 rupees in a year. On which a compounding interest rate of 7.1 will be applied. In this case, if you deposit for 15 years, your total investment will be 9 lakh rupees. Your maturity amount will be Rs 16.25 lakh, and your interest amount will be Rs 7.25 lakh.
You can invest up to 1.5 lakh rupees per year under this scheme. It can also be paid in 12 equal installments. You can also open a PPF account for your children if you wish. Children under the age of ten can also open a PPF account, which can be managed by the parents. Furthermore, if the scheme matures after 15 years, you can extend it for another 5 years. There is no risk of losing money in this transaction. You can also get a loan from the bank using this account. You will not be required to pay any taxes on this money.
As per Indian law, a person is allowed to open only one PPF account. The minimum deposit is Rs 500 as initial deposit amount. NRIs cannot open a PPF account. You can visit the nearest Bank branch and place the request for enrollment update/change as and when required. Customers need to visit the branch to get the passbook for online opening of PPF account.
In case of any Doubt regarding Membership you can mail us at [email protected]
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