PUBLIC PROVIDENT FUND (PPF): 5 BENEFITS YOU MUST KNOW

1. Tax Benefit

You are eligible for tax deductions under Section 80C of the Income Tax Act, up to a maximum limit of Rs. 1.5 lakh per financial year. Additionally, the interest earned, and the maturity amount received are both tax-free.

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2. Long-term Investment and Retirement Planning

It is a long-term savings strategy and is best for your retirement planning. Locking period of 15 years and the compounding effect helps your investment grow significantly.

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3. Fixed and Attractive Interest Rate

The PPF offers a fixed and attractive interest rate by the government. Historically, the PPF interest rate has been higher than most other fixed-income investment options.

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4. Flexible Investment Option

You can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per financial year. Furthermore, you have the option to make contributions in lump sums or in multiple installments.

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5. Safety and Security

PPF is a government-backed investment scheme, which makes it highly safe and secure. The government guarantees the principal amount invested, and the interest earned is also considered to be risk-free.

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