Good news for investors. If you’re on the hunt for a secure and tax-free investment, the Public Provident Fund (PPF) could be just what you need. This long-term savings plan is backed by the Government of India, offering you security, stability, and solid returns. The best part? You can kick things off with just Rs 500, and over time, it can grow into a substantial fund. Let’s dive into the details of this scheme and how to get started.
What makes a PPF account a smart choice?
A PPF account isn’t just a way to save; it’s also a fantastic tool for retirement planning. You’ll enjoy interest rates that are shielded from market fluctuations, plus you can take advantage of tax benefits under section 80C. The government updates PPF interest rates periodically, ensuring it remains a dependable investment option.
How can you turn Rs 500 into millions?
To set up a PPF account, you only need to start with Rs 500. However, you can deposit up to Rs 1.5 lakh in a financial year. The interest is calculated based on compounding, which means your money can really grow over time. If you consistently invest the maximum amount each year and keep it for 15 years or more, you could end up with a significant sum.
Who is eligible to open a PPF account?
Any Indian citizen can open a PPF account. Parents can also set up accounts for their minor children. However, NRIs and HUFs aren’t eligible for this scheme.
What documents do you need to open a PPF account?
– PPF account opening form
– Identity proof (like Aadhaar Card or PAN Card)
– Address proof (such as Voter ID or Ration Card)
– A passport-sized photo
How to open a PPF account offline:
1. Visit your nearest bank or post office to get the PPF account form.
2. Fill out the form with the necessary details and attach the required documents.
3. Submit the form along with your initial deposit to the bank or post office.
4. Once your application is approved, you’ll receive a PPF passbook.
Online
1. Log in to your account with Internet Banking or Mobile Banking.
2. Go to ‘Open a PPF Account’ option.
3. Fill the online form and upload the required documents.
4. Enter the investment amount of your choice.
5. Do OTP verification and submit.
6. You will receive confirmation via email.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.