A great scheme for old age, this scheme offers 7.1% interest, read the details

PPF Interest Rate: The central government operates numerous government schemes. These schemes offer substantial returns to individuals. Currently, the government is running a special small savings scheme, investing in which can build a substantial corpus. The special feature of this scheme is that it involves no risk and offers a guaranteed return of up to 100%. This government scheme offers interest at a rate of 7.1%. Therefore, investing in this scheme promises excellent returns.

How to Open a PPF Account

Anyone can open a PPF account at a post office or bank. Minors or mentally ill individuals can also open an account under this scheme. This scheme allows long-term savings investments. Tax benefits are also available.

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Understand the rules for calculating interest

Monthly interest in PPF is calculated on the amount deposited in the account by the 5th of each month. Interest is paid on the minimum balance maintained in the account between the 5th of each month and the end of the month.

What will be the tax benefit?

If you invest in PPF, you receive a tax benefit of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Furthermore, the interest earned and maturity proceeds are completely tax-free. It is considered one of the most tax-saving schemes.

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Interest is earned on a deactivated PPF account

Money deposited in a deactivated PPF account will continue to earn interest at the applicable interest rate, whether the account holder reactivates it or not. This scheme helps PPF investors build a substantial corpus and save tax over the long term.