Public Provident Fund

What is Public Provident Fund ( PPF )
Public Provident Fund is a long term scheme that offers 7.6% per anumn, yearly compounded; this is a right investment scheme for the people who are looking for long term savings to meet their financial needs like children marriage, education, retirement etc

This scheme is very helpful for the long term investors to make their life secure by meeting their financial needs. A best place to park your money for long-term needs

This scheme can be opened in banks or in nearest post office branch, the same features apply to all
  • The minimum investment is Rs 500

  • The Maximum investment is 150000

  • Public Provident Fund account can be opened in name of minor or major

  • Deposits can be done at a time or in 12 equal installments per P.a

  • Joint account can be opened

  • Accounts can be opened by cheque, cash

  • Maturity is 15 years, if interested can extent to 5 more years

  • Before 15 years account cannot be closed

  • All deposits up to 150000 per P.A will qualify for income tax benefit

  • Interest earned also tax free under this scheme

  • Withdraw facilities will be available from 7th year onwards after opening the account

  • You can avail loan on your PPF account after 3rd financial year onwards

Review About Public Provident Fund :
Positives of Public Provident Fund:
  • Can get 7.6%, compounded annually

  • Helpful to meet your long term financial needs like child education, marriage etc

  • Can get up to 150000 tax benefit every year

  • Can get loan facility under this scheme

  • A secure investment & a government operated scheme

Negatives of Public Provident Fund:
  • A very long term investment

  • Difficult to deposit every year, every year you need to contribute at least 500 Rs in a year

  • 7.6% interest rate is less for 15 years term

  • If anyone wants to withdraw the money has to wait for 7 years tenure

  • PPF account interest rates may change based on government decisions