PPF Investors: You have just about 14 days to make tax-saving investments for the new financial year, i.e. till March 31. Not only do you save taxes but make a safe investment with the Public Provident Fund (PPF) scheme.
The PPF scheme is currently offering an annual interest rate of 7.1% on the PPF account, Apart from this, you also get the loan facility against your PPF account.
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Here we share with you a few beneficial features of having a PPF account.
Government Security
PPF is directly regulated by the central government and the interest is also decided by the government. Therefore, there is a complete guarantee of security on investment in the scheme. If you are looking for an investment with tax exemption and good returns, then investing in PPF is one of the best options.
Tax Exemption
Investment in PPF comes under the Exempt-Exempt-Exempt (EEE) category which means that you get the benefit of tax exemption on the entire investment made in the scheme. Apart from this, no tax is to be paid on the interest received from investment and also on the entire amount of investment in this scheme. No tax has to be paid on the amount received on maturity.
Loan Facility Available
You can also take a loan against a deposit in the PPF account. You are entitled to take a loan from PPF from one financial year after the end of the financial year in which you have opened the PPF account till the end of the fifth financial year.
You can take a maximum loan of 25% against the deposit and the interest can be paid in two monthly installments or in lump sum.
You Can Invest For As Long As You Want
The maturity period of a PPF account is 15 years. But you can extend it as much as you want. If the need for money is not immediate then the account holder can extend the account after maturity. This will help you in generating more funds.
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Easy To Run Scheme
In this scheme, you have to invest a minimum of Rs 500 in a year, and a maximum of Rs 1.5 lakh can be invested in it in a year. You can deposit money in a maximum of 12 installments in a financial year. Currently, it is getting 7.1% annual interest.