The Post Office Public Provident Fund (PPF) scheme is one of the most popular and reliable savings and tax-free earning options for millions of Indians. This scheme is a boon for those who want to grow their savings without taking any risk. If you save approximately ₹12,500 every month and invest in PPF, your fund can grow to approximately ₹40 lakh after 15 years. PPF currently offers an annual interest rate of up to 7.1%, and most importantly, this interest is completely tax-free.
The Golden Equation of Minimum Investment and Tenure
The PPF scheme has been launched with small investors in mind. You can open a PPF account with just ₹500 and start investing. You can invest up to ₹1.5 lakh in a financial year. You can deposit this amount in monthly or annual installments.
Lock-in Period and Extension
The lock-in period of PPF is 15 years. This means your savings are protected for 15 years. However, you can extend this period by 5 years at a time. This facility is ideal for larger goals, such as retirement funding or children’s education, where you don’t need the money for an extended period.
Excellent Partial Withdrawal and Loan Facility
Another unique feature of PPF is that it allows access to funds for emergency needs. You can take a loan against your PPF account after 1 year of account opening. Furthermore, you can also make partial withdrawals after 5 years. This facility helps you meet unexpected needs without having to close your account. This scheme assists with emergency expenses while ensuring your financial security.
Tax Benefits and Guaranteed Government Protection
The biggest attraction of the PPF scheme is its tax benefits and government protection. Investing in the PPF scheme provides tax benefits under Section 80C. The investment amount, the interest earned, and the maturity amount are completely tax-free. This triple tax benefit further enhances your total savings.
Completely Safe
This scheme is operated by the Post Office and guaranteed by the Government of India. This means your investment is completely safe and free from market risks. PPF is an unbeatable choice for smart investors who want a secure future and tax-free growth.