PPF Account: If you want to invest a part of your earnings in a government scheme, then Public Provident Fund Scheme can be a great investment option. Through this scheme, you can get the benefit of tax exemption along with higher interest rates in the long term. There are many people who do not get the benefit of provident fund, then PPF scheme can be a great investment option for them. If you are thinking of investing money in it, then we are giving you information about its details.
Getting the benefit of such interest rate-
Public Provident Fund Scheme is a long term scheme of 15 years, by investing in which you can create a big fund for the expenses of your old age, children’s education, marriage etc. At present, the government has fixed the interest rate for the scheme at 7.1 percent for the quarter from January to March. This interest is calculated on the basis of compounding in the account. In this scheme, you can invest an amount ranging from Rs 500 to Rs 1.50 lakh in a financial year. After completion of the period of 15 years, you can extend the investment period in this scheme for another 5 years.
You will get this much return-
If a person invests Rs 5000 every month then the amount invested on annual basis will be Rs 60,000. The total amount in 15 years will be Rs 9 lakh. According to the PPF calculator, you will get Rs 7.27 lakh as interest on this amount in 15 years. In such a situation, on maturity you will be the owner of a total of Rs 16.27 lakh.
Loan facility is available on the scheme-
Investors also get loan facility under PPF scheme. After investing continuously for 3 years, you can get a loan up to 75 percent of the deposited amount. Whereas for premature withdrawal from the account, it is necessary to invest for at least 5 years. If you also want to invest in PPF scheme, then you can open an account in any government or private bank or post office. Keep in mind that the PPF account of a minor is opened only under the supervision of parents. By investing in this scheme, you can get a maximum exemption of Rs 1.50 lakh annually under Section 80C of Income Tax.
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