Public Provident Fund (PPF) is one of the most popular long-term savings schemes. It gives excellent returns on small investment.
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Public Provident Fund (PPF) long term most popular Savings Scheme is one of the. It gives excellent returns on small investment. This scheme also meets the financial needs of the individual at the time of retirement. Its tenure is of 15 years. However, the person can extend it for a further period of five years. Partial withdrawal is allowed only in a few cases. Many benefits are available in the PPF scheme in terms of interest rate, security, tax. Let us tell you about the benefits of investing in PPF today.
better interest rate
For the PPF scheme, the central government changes the interest rates every quarter. The interest rate of PPF has always been more than 7 percent. According to the economic condition of the country, it keeps on decreasing a little more and less. The interest rate on PPF for the December quarter of FY 2023 is 7.1 per cent. In this the interest is compounded on an annual basis. The interest rate in PPF scheme is better as compared to FD of many banks.
Tenure can be extended further
In PPF, customers get a tenure of 15 years. After this, they can withdraw the amount, which comes under the ambit of tax exemption. However, subscribers can extend the account for another five years to continue investing. With this, they can also choose whether to continue contributing to the scheme or not.
benefit of tax exemption
The amount deposited in the Public Provident Fund is eligible for tax exemption under section 80C of the Income Tax Act. A tax deduction of Rs 1.5 lakh can be taken on the amount invested in the scheme. With this, let us tell you that PPF follows the EEE model of taxation. This means that both the interest earned in the scheme and the maturity amount are tax exempt.
investment protection
PPF scheme is a government supported scheme. Because of this, customers get complete security of investment in Public Provident Fund. Generally, people who cannot take any risk can earn fixed interest by investing in Public Provident Fund.
loan facility
Customers can also take loan against PPF account. The loan can be availed for three to six years from the date of account opening. This is especially beneficial for investors who can apply for short term loans without pledging any security.
Source: www.tv9hindi.com”