If you also invest in PPF, then you need to remember the 5th fund of every month to earn better on your investment amount.
New Delhi. Public Provident Fund (PPF) is a safe investment option along with guaranteed returns. Due to the excellent returns and tax savings, the number of people investing in PPF is increasing continuously. Explain that interest is being given at the rate of 7.1 percent on the amount deposited in the PPF account by the government. PPF account can be opened in post office or any bank branch. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be deposited in PPF account per year. But if you want better returns, then tell that today is a very special day.
You should know that investment in Public Provident Fund is completely tax free. If you also invest in PPF, then you need to remember the 5th fund of every month to earn better on your investment amount. Let’s know what is the fund of 5th date.
Know why 5th date is special
If you also invest in PPF, then you should deposit money before 5th or 5th of every month. If you do not do this, you may have to bear the loss of your interest. If you deposit money before this date, then the interest of that month is also added to your account, but if the investment is made after the 5th, then the interest of that month will not be given to you.
How much interest is received
The interest of Public Provident Fund has not increased for a long time. 7.1 percent interest is issued under PPF account. The government fixes the interest rate every year and adds it to your account after the end of the financial year. This scheme is operated under small savings scheme and it is tax free, because the maximum investment limit in it is Rs 1.5 lakh. This is a good option for those investing in retirement and long term.
Lock in period
Under this scheme, there is a maturity period of 15 years. However, this maturity period can be further extended by 5 years. The lock-in period for pre-withdrawal in the PPF account has been kept at 5 years. Means money cannot be withdrawn from this account for 5 years after the year of opening the account. After completion of this period pre withdrawal can be done by filling Form 2. If you want to withdraw money from the account before 15 years or want to close it, then for partial withdrawal you have to follow certain conditions. After 15 years, the entire amount deposited in the account can be withdrawn.
