The central government has decided on the interest rates for small savings schemes, and the interest rates for the Public Provident Fund (PPF), a popular scheme among working-class individuals, have also been announced. If you invest in PPF, this news is extremely useful for you. The government has not made any changes to PPF interest rates for the third quarter, starting in October. This is the seventh consecutive quarter in which interest rates have remained unchanged, providing investors with assurance of stability.
PPF Interest Rate and Great Investment Benefits
The current PPF interest rate remains at 7.1 percent. This government-backed, secure scheme has long been popular with investors. Its biggest advantage is that the invested amount, interest earned, and maturity amount are all completely tax-free, known as E-E-E (Exempt-Exempt-Exempt) status.
PPF accounts have a tenure of 15 years, which can be extended in additional 5-year installments. The minimum investment is ₹500 and the maximum is ₹1.5 lakh annually. Investors can deposit lump sums monthly or annually. Furthermore, the interest earned on PPF is compounded annually, which means your money grows rapidly through compound interest. If an individual invests a maximum of ₹1.5 lakh every year, they can easily receive lakhs of rupees in tax-free returns after 15 years.
Guaranteed Security
Another major advantage of this unique scheme is that it is completely safe, as it is guaranteed by the Central Government. Market fluctuations do not affect it.
Loans and Partial Withdrawals
If needed, you can also take a PPF loan. Loans up to 25% of the account balance can be taken between the third and fifth year of account opening. Additionally, partial withdrawals are also available after the account has completed seven years.
Easy Availability
Another special feature of PPF is that it can be easily opened at any post office or authorized bank. Now, this facility is also available online, making it even more convenient for investors.
Long-Term Fund Building
PPF is a highly reliable scheme for those seeking long-term and secure returns. If a person invests a maximum of ₹1.5 lakh every year, after 15 years, he can create a corpus fund worth lakhs of rupees in the form of tax-free returns.