Public Provident Fund (PPF) is a long-term savings scheme offered by the Indian Government for individuals. PPF is a secure and tax-efficient investment option that aims to encourage savings and provides financial security to investors.
Here are some of the benefits of investing in PPF:
- Tax Benefits: The amount invested in PPF is eligible for a tax deduction under Section 80C of the Income Tax Act up to Rs. 1.5 lakh per annum. The interest earned and the maturity amount are also tax-free.
- Long-Term Investment: PPF has a maturity period of 15 years, which makes it a good long-term investment option for individuals who want to save for their future.
- Low Risk: PPF is a low-risk investment option as it is backed by the government, and the investment amount is guaranteed.
- Attractive Interest Rates: PPF offers attractive interest rates that are higher than other fixed-income investments like FDs and NSCs. The interest rate on PPF is currently 7.1% per annum (as of April 2023).
- Flexible Investment Options: Investors can choose to invest in PPF through monthly or annual deposits, and the minimum investment amount is Rs. 500 per annum.
- Loan and Withdrawal Facility: Investors can avail of a loan or partial withdrawal from their PPF account after completing five years of investment.
Overall, PPF is a secure and tax-efficient investment option that can help individuals build a long-term savings corpus while enjoying various benefits.
