PPF Investment Scheme: If you are looking for an investment that offers tax savings along with good returns, then the Public Provident Fund (PPF) is an excellent option for you. Investment in PPF falls under the EEE (Exempt-Exempt-Exempt) category. This means that you get complete exemption from income tax, and the amount received on maturity is also tax-free.

However, some other schemes like Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme offer higher returns than PPF, but not everyone can invest in these schemes.

Invest with complete security

The government provides complete security to those who invest in PPF. Currently, the PPF account offers an annual interest rate of 7.1%. The advantage is that your money is completely safe from market risks, and you can gradually earn good returns. The government fixes the interest rate every three months, providing stable returns to investors.

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Facility for long-term investment

The normal maturity period of a PPF account is 15 years. But if you wish, you can invest for more than 15 years, and the interest earnings continue every year.

Easy investment in installments

You can invest in a PPF account in installments. The minimum investment amount is Rs 500, while you can deposit a maximum of Rs 1.5 lakh in a year. Additionally, you can deposit money in up to 12 installments in a financial year.

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Loan facility when needed

If you suddenly need money, you can also take a loan against your PPF account. The rule is that you are eligible for a loan from the financial year following the year of opening the account until the fifth financial year. A maximum of 25% of the PPF balance can be taken as a loan, and the interest rate on this loan is only 1% higher than the PPF interest rate.

Build a substantial fund through regular investments

If you invest ₹1,000 every month in a PPF account, you can build a fund of approximately ₹3.25 lakh at maturity after 15 years. The best thing about PPF is that the interest is compounded every three months, which allows your investment to grow steadily and generate good returns over the long term.