PPF: Before investing in public provident fund, know the special things related to eligibility, interest rate and maturity

In this era of Corona crisis, everyone wants to invest in fixed income funds. Talking about the fund with guaranteed returns, PPF is included in such a scheme which gets higher interest than many other funds. Due to this, Public Provident Fund (PPF) is one of the most popular saving funds in the country. Public Provident Fund is a 15-year investment plan. Also, this scheme comes under the category of exempt, exempt, exempt. This means that in this scheme you get the benefit of tax rebate on investment, interest income and withdrawal of money.

Let us know whether you can invest in this scheme or not. How much interest do you get on this plan and for which period you can invest in this plan.

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Eligibility: You can open a PPF account in your name or as the guardian of a minor.

Investment limit: Currently a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in a PPF account. You can invest through a maximum of 12 transactions. However, it should be kept in mind that if you invest 1.5 lakh rupees annually in PPF account, then you do not get any interest on the additional amount nor do you get income tax rebate on this amount.

Maturity period of PPF account: Maturity period of Public Provident Fund account is 15 years. However, after maturity you can extend the maturity period on one or more occasions by applying. Once applied, the maturity period increases to five years.

Rate of interest: The government fixes the rate of interest on PPF at the beginning of every quarter. Currently, this rate is at 7.1 percent. Interest is paid on 31 March of every year.

Process to open PPF account: You can open PPF account in post office or banks. Major banks like State Bank of India, Canara Bank, ICICI Bank, HDFC Bank and Punjab National Bank give you the facility to open PPF account.

Income tax benefits: On investing in this scheme, you get the benefit of income tax exemption under 80C in income tax. At the same time, income from its interest is completely outside the purview of income tax.

Loan and Withdrawal: Loan and withdrawal depends on how old your PPF account is and how much amount is deposited in it. You can take a loan during the third to sixth year of investment. At the same time, partial withdrawal facility can be availed from the seventh fiscal year.

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