Post Office Public Provident Fund (PPF) scheme is a popular and safe investment option, which provides good returns in the long run through regular savings. If you invest in PPF by saving around Rs 12,500 every month, then after 15 years your fund can reach around Rs 40 lakh. This scheme is suitable for those who want to grow their savings without taking any risk and also want to take advantage of tax savings. The interest received in PPF is approximately 7.1% per annum and it is completely tax free, that is, you do not have to pay any tax on the interest.
Minimum amount and period of investment
Under this scheme, you can open a PPF account from zero to Rs 500 and start investing in it. Every financial year you can invest up to Rs 1.5 lakh, which can be deposited as monthly or annual installments. The lock-in period of PPF is 15 years, but you can later extend this period by 5 years respectively. This means your savings remain safe for a longer period of time and is ideal for larger purposes like your retirement fund or child’s education.
Partial withdrawal and loan facility
Another special thing in the plan is that you can take loan after 1 year and make partial withdrawal after 5 years. This allows you to access funds to meet emergent needs without closing your account. This plan provides assistance for emergency expenses while also ensuring your financial security.
Tax benefits and protection
Investing in the PPF scheme provides tax benefits under Section 80C. Along with investment, interest also remains completely tax free, which increases your total savings further. Additionally, investment in this scheme run by the Post Office is safe and is also guaranteed by the Government of India.