New Delhi: If you are looking for a safe investment, then Public Provident Fund (PPF) can be a good option for you. It is a government backed scheme, which can be opened in both banks and Post Office. Currently it offers an annual interest rate of 7.1 per cent, compounded yearly. A maximum of Rs 1,50,000 per financial year can be invested in it. However, only one account can be opened nationwide on one name in either at a Post Office or a bank. Investors also get tax deductions under Section 80C of the Income Tax Act.
PPF calculator
If you invest Rs 12,000 monthly in a Public Provident Fund (PPF) with an annual interest rate of 7.10 per cent, after 15 years, you would accumulate a maturity amount of Rs 37,86,820. Over this period, your total deposits would amount to Rs 21,60,000, while the total interest earned would be Rs 16,26,820. This reflects the compounded growth and tax benefits of investing in PPF over the long term, making it a popular choice for conservative investors aiming for steady returns and wealth accumulation.
PPF deposit limit
The Public Provident Fund allows for a minimum deposit of Rs. 500 and a maximum of Rs 1.50 lakh per financial year, including deposits in both the account holder’s own account and those made on behalf of minors. Deposits can be made in any number of installments throughout the year, in multiples of Rs 50, up to the annual limit of Rs 1.50 lakh. Accounts can be opened using cash or cheque, with the date of realization of the cheque in the government account considered as the date of opening or subsequent deposit. These deposits qualify for deductions under Section 80C of the Income Tax Act, providing tax benefits to investors.
What happens to the account in the event of Death of account holder?
In the event of the account holder’s death, the PPF account will be closed, and neither the nominee nor the legal heir(s) will be permitted to make further deposits into the account. The PPF interest rate will be paid up to the end of the preceding month in which the account is closed due to the account holder’s demise.
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the compounded growth and tax benefits of investing in PPF over the long term, making it a popular choice for conservative investors aiming for steady returns and wealth accumulation. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
