Today, we are going to tell you about the Post Office’s Public Provident Fund (PPF) account, where investing will make you a rough profit, and your pocket will always be full of money.
Rs 500 invested in a year:
The Public Provident Fund account of the Post Office benefits the common people immensely. In this account, you will have to deposit at least Rs. 500 in a financial year. Keep in mind that you cannot deposit more than Rs 1.5 lakh a year. You need to keep in mind that if you have opened a PPF account in the name of yourself and your children, the maximum investment amount should be Rs 1.5 lakh.
Get rough interest:
It has been provided in the PPF Act, 1968. Its maturity period is 15 years. You can put a maximum of 12 times the money in a year in the PPF account. However, if you want, you can also invest a lump sum amount instead of repeatedly putting money. Under this, you will get interested at 7.1 percent per annum.
Tax exemption also available:
Not only that, but the amount invested in PPF also gets tax reduction under section 80C of Income Tax Act, 1961. The main thing is that the interest on investment is also covered under section 10.
Tax exemption won’t be available if you invest more:
But keep in mind that investing more than the limit will not interest you on the additional amount, nor will it get tax exemption under section 80C.
Open PPF account:
If you want to open a PPF account, this facility is available by the government in many post offices and banks. Some banks also facilitate customers to open PPF accounts online. Even if you have opened the General Provident Fund (GPF) account or the Antrix Provident Fund (EPF) account, you can open the PPF account. To create a nominee, you need to fill in form-E while opening the account.
Profitable to invest by the 5th:
It may be beneficial for you to put money in the PPF account from one to five dates. This is because its interest is assessed on the minimum balance of the account by the 5th of every month. So if you put money till the 5th, your minimum balance increases.
Loan facility also available:
You will also get a loan facility from the third financial year of account opening. The most important part of the account is that you can open a Public Provident Fund account for just Rs. 100.
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