Public Provident Fund is a very popular option for investment. It is a tax saving scheme which attracts people a lot for investment. While PPF provides tax benefits along with good returns, many people are unaware of some of its facts. In this article, we will tell you about some such facts related to PPF.
In today’s time, investing along with saving is very important. There are many options available in the market for investment. Public Provident Fund is very popular in investment schemes. Many investors invest in this scheme and deposit a large fund. This scheme is a tax saving scheme. Investors turn to this scheme to get tax benefits.
PPF comes under the EEE category. Tax is saved in three ways through this scheme. Yes. In this scheme, you can save tax on investment, interest and maturity. Investors know about these benefits but are also unaware of many things. Below we will tell you about some facts related to PPF.
Can you open a joint account?
There is no option to open a joint account in PPF. Even though a nominee is mandatory in this scheme, a separate share is also fixed for him. If the PF account holder dies, then the nominee gets that amount.
There is no facility to open more than one account in the PPF scheme. And if you accidentally open two accounts, then the second account will not be considered valid. If you have opened two accounts, then to avoid any problem in future, you will have to merge the account. You will not get the benefit of interest until you merge the account.
Two accounts will not be opened
There is no facility to open more than one account in the PPF scheme. And if you accidentally open two accounts, the second account will not be considered valid. If you have opened two accounts, then to avoid any problem in the future, you will have to merge the accounts. You will not get the benefit of interest until you merge the accounts.
Interest rate is stable
In the PPF scheme, the benefit of interest is available on the investment amount. There has been no change in the interest rate applicable on this scheme for a long time. From January-March 2020, the interest of PPF has remained stable at 7.1 percent. There are investment schemes available in the market with higher interest rates than this.
Limit of investment in PPF
The annual limit of investment in PPF is Rs 1.5 lakh. If you want to invest more than Rs 1.5 lakh in a year, then you should select some other option.
