PPF Investment: For the financial year 2024-25, it is essential to complete your tax-saving investments by 31 March 2025. If you seek a secure investment option that also offers tax benefits, consider the Public Provident Fund (PPF) scheme. Presently, the PPF account offers an annual interest rate of 7.1%.
These things keep in mind for PPF investment
The PPF is governed directly by the Central Government, which also determines the interest rate, ensuring a high level of security for your investment. If you are in search of an investment that provides tax exemptions along with favorable returns, PPF stands out as an excellent choice. Only the Sukanya Samriddhi Yojana and the Senior Citizen Scheme offer higher returns than PPF, but these options may not be accessible to everyone.
Investments in PPF fall under the EEE (Exempt-Exempt-Exempt) category, meaning you benefit from tax exemptions on the total amount invested in the scheme. Additionally, there is no tax on the interest earned or on the maturity amount received.
You also have the option to secure a loan against the deposits in your PPF account. Eligibility for a loan begins one financial year after the year in which you opened your PPF account and extends until the end of the fifth financial year.
The standard maturity period for a PPF account is 15 years, although you have the option to extend it indefinitely. If immediate access to funds is not required, account holders can choose to extend their accounts post-maturity, thereby enhancing their savings.
In this scheme, the minimum annual investment is 500 rupees, while the maximum allowable investment is 1.5 lakh rupees per year. Contributions can be made in up to 12 installments within a financial year, with the current interest rate set at 7.1% annually.