The Public Provident Fund is one of the best and safest, money-making schemes in India. And here we list 5 PPF reasons to get an account for yourself, and family members, and thereby accumulate wealth.
1. PPF Income Tax benefit: All the money invested in a PPF account are safe from the clutches of the taxman. That includes interest earned and at the time of withdrawal after maturity too.
2. PPF builds savings habit: PPF encourages long-term savings for retirement, education, or other goals. That is why, parents should open a PPF account for their children too.
3. PPF provides fully guaranteed returns: PPF is a fully risk-free asset as it is backed by the government, ensuring safety and security of investments.
4. PPF interest rate: It also typically offers higher interest rate than a savings bank account. PPF interest rate now is 7.10%. Because of the compounding of interest, the value of the money in a PPF account jumps in value over time.
5. PPF withdrawal: Partial withdrawals and loans against the the money in the PPF account are allowed. These are some of the reasons why PPF is such a popular choice for long-term financial planning for an individual and his family.
In effect, PPF account will ensure that the account holder is able to get large sums of money if he loses his job or during emergencies. If all goes well, then the PPF account holder will get a huge retirement nest. he can withdraw this sum after the 15-year lockin period or he can keep extending it indefinitely for 5-year periods after that. This money can be used for buying a big asset for the family like a house, fund children’s education or even to ensure a steady income during the retirement years.
PPF
Details
Income Tax Benefit
PPF investments and interest are tax-exempt.
Savings Habit
Encourages long-term savings; good for children’s accounts.
Guaranteed Returns
Government-backed, risk-free investment.
Interest Rate
Offers 7.10% interest, higher than savings accounts.
Withdrawal Options
Allows partial withdrawals and loans against balance.
The Public Provident Fund is one of the best and safest, money-making schemes in India. And here we list 5 PPF reasons to get an account for yourself, and family members, and thereby accumulate wealth. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
