PPF Schemes: If you have kept your money in bank accounts and think you are saving it, you are mistaken. You are not saving your money but ending your savings. If you want to increase your savings then it is necessary to invest your savings somewhere. The bank also gives you the facility of FD.
If you invest your money in FD then you will get more benefits than the savings account. Apart from this, you can think of another better option called the PPF scheme. This scheme is completely a government scheme and it comes under a tax-free scheme.
What is the PPF Scheme
This scheme run by the government is one of the most used schemes. People trust it a lot and do not hesitate to invest their money in this scheme. This scheme is supported by the government, so it is considered completely secure.
This scheme has been placed in the EEE category, which means that you will not get any tax on an amount of up to Rs 1.5 lakh every year. This scheme takes 15 years to mature and whatever amount you get on maturity is also tax-free.
Rules for extending PPF account
If you have chosen the PPF scheme for investing, then you need to know about its extension. The investment period of the PPF scheme is usually 15 years. When the amount of your PPF scheme matures, you have the option to extend the PPF scheme further.
The government has made a rule for this that you can extend the PPF scheme for five years sequentially. Experts say that if you do not need any money, then you can extend your scheme further. During the extension, the PPF account holder has the option to invest further or not. They will continue to get the benefit of extension.
How many times can the money be withdrawn from the PPF scheme
If you have extended your PPF scheme further, you can withdraw the amount from this scheme once a year. No tax is levied by the government on the amount withdrawn. If the investor chooses not to invest during the extension, then he has the option to withdraw the interest money once a year.
How much interest is available in the PPF scheme
In the PPF scheme run by the central government, you are given interest at the rate of 7.1% every year, that is, if you invest Rs 100000 lakh, you will get a profit of Rs 7100 every year. This means that you will get a total of Rs 107100 every year. The government is giving separate benefits for senior citizens. Senior citizens get interest at the rate of 7.7%.