At present, interest is being given in PPF account at the rate of 7.1 percent. You can get income tax rebate by investing in this account. Also, the money received on maturity is tax free. The Government of India gives a guarantee on the amount deposited in the PPF account.
Investing in PPF is considered a very safe and profitable investment. Actually, the government guarantees its security, which is why it is considered a safe investment.
You probably will not believe knowing that you can take advantage of this even without depositing money in PPF account. There is an option in PPF account that you can take advantage of interest even without investing. Let us tell you how?
What is PPF Account?
PPF account can be opened for a period of 15 years in select branches along with the post office. You can deposit a minimum of 500 rupees and a maximum of 1.5 lakh rupees in it every year. The account holder does not get interest on the amount more than 1.5 lakhs.
Two options after 15 years
You can withdraw money from PPF account on completion of 15 years. But at this point you have two options. The first is that you can extend the account for 5-5 years by investing as before. For this you have to make a written request.
In this way you will get interest without investment
After 15 years, as another option, you can operate PPF account without investment. In this, the amount which matures in 15 years with your investment, will continue to get fixed interest by the government every year. You do not have to deposit any money in this.
5 Benefits of PPF Account
- At present, interest is getting at the rate of 7.1 percent in PPF account.
- Income tax rebate can be taken on the money deposited in the PPF account.
- The money received from the PPF account on maturity is tax free.
- PPF account has a lock-in period of 15 years.
- The Government of India gives a guarantee on the amount deposited in this account.
