If you’re looking to invest and want guaranteed returns with no risk, the Public Provident Fund (PPF) is definitely worth considering. It’s a government-backed savings scheme that keeps your money safe while also offering decent interest rates. The best part? Both the interest you earn and the amount you get at maturity are tax-free. The investment period for this scheme is 15 years.
Who can set up a PPF account?
Any Indian citizen can open a PPF account, and parents or guardians can do it for their minor children. Even NRIs have the option to invest in this scheme.
How to invest?
You can start with a minimum investment of Rs 500 and go up to Rs 1.5 lakh in a PPF account. You can choose to invest this amount all at once or in installments. If you invest up to Rs 1.5 lakh in a year, you can also enjoy tax benefits under section 80C. The government reviews the interest rate for PPF accounts every quarter, and for the year 2024-25, it’s around 7.1% per annum.
Open a PPF account from home
If you have an account with a major government or private bank like SBI, HDFC, ICICI, or Bank of Baroda, you can easily open a PPF account online. Just head to the Investment or Services section and select the option to open a PPF account. Fill in your personal details and nominee information.
Next, upload the required ID documents like your Aadhaar and PAN card. Remember, you need to deposit at least Rs 500 to get started. Once everything is done, you’ll get a confirmation, and your PPF account will be set up.
Maturity rules for PPF
The PPF matures after 15 years. After that, you can extend it for two additional 5-year terms if you want, or you can withdraw the full amount after the initial 15 years. Plus, you can make partial withdrawals after 7 years if you find yourself in a pinch.
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