Public Provident Fund Yojna: Everyone wants their hard-earned money should be safe and they should also get a good profit from it.
Also, they want to avoid the hassle of tax. If you are also looking for such an option, then the Post Office PPF (Public Provident Fund) scheme can be a great investment option for you.
A great way of saving money with safe investment, great interest rates, and tax exemption (Safe Investment, Attractive Interest Rates & Tax Benefits)
The Post Office PPF scheme is an investment scheme that comes with a government guarantee. Also, at present, this scheme is getting an interest rate of 7.1%, which allows earning good profit without worrying about the fluctuations in the market.
What’s more, the PPF scheme comes in the EEE (Exempt-Exempt-Exempt) category. This means that the investment made in this scheme, the interest received on it, and the maturity amount, all three types of benefits are not taxed.
Also, under Section 80C of the Income Tax Act, one gets the benefit of additional tax exemption on investments up to Rs 1.5 lakh.
Small Investment, Big Returns
A special feature of the PPF scheme is that you can start investing in it with just Rs 500. At the same time, the maximum investment limit in a year is up to Rs 1.5 lakh. This flexibility makes this scheme attractive for both small and big investors.
If seen for long-term investment, PPF can prove to be very beneficial. For example, if a person invests Rs 7,500 every month, then in 15 years his total investment will be Rs 13,50,000.
According to the interest rate of 7.1%, this amount will be around Rs 24,40,926 at the end of 15 years. From this, one can guess how beneficial PPF can be in the long run.
Don’t Worry About Inactive Account
If your PPF account has been closed for any reason, there is no need to panic. You can get your account restarted by depositing just Rs 500 and paying a penalty of Rs 50. For this, you have to go to your nearest post office and submit a written application.
The Post Office PPF Scheme is an excellent option for safe and profitable investment for the long term. This scheme not only offers attractive interest rates but also gives tax exemption and government guarantee.
The facility of starting with a low investment amount makes it suitable for small investors as well. However, before investing, keep your financial situation and goals in mind and consult a financial advisor if needed.
