Public Provident Fund (PPF) is a safe investment option with guaranteed returns. Due to the excellent returns and tax savings, the number of people investing in PPF continuously increases. Explain that interest is being given at 7.1 per cent on the amount the government deposited in the PPF account. PPF accounts can be opened in the post office or any bank branch. A minimum of Rs 500 and Rs 1,50,000 can be deposited in the PPF account per year. But if you want better returns, tell them today is exceptional.

You should know that investment in Public Provident Fund is entirely tax-free. If you also invest in PPF, you need to remember the 5th fund of every month to earn better on your investment amount. Let’s know what the fund is for the 5th date.

Know why the 5th date is particular.

If you also invest in PPF, you should deposit the money before or on the 5th of every month. If you do not do this, you may have to bear the loss of your interest. If you deposit money before this date, then the interest of that month is also added to your account, but if the investment is made after the 5th, then that month’s interest will not be given to you.

How much interest is received

Public Provident Fund interest has not increased for a long time. 7.1 per cent interest is issued under the PPF account. The government fixes the interest rate every year and adds it to your account after the end of the financial year. This scheme is operated under a small savings scheme and is tax-free because itsits maximum investment limit5 lakh. This is a good option for those investing in retirement and the long term.


Lock-in period

Under this scheme, there is a maturity period of 15 years. However, this maturity period can be further extended by five years. The lock-in period for pre-withdrawal in the PPF account has been kept at five years. This means money cannot be withdrawn from this account for five years after the year of opening the account. After completion of this period, pre, withdrawal can be done by filling out Form 2. If you want to withdraw money from the account before 15 years or want to close it, then for partial withdrawal, you have to follow certain conditions. After 15 years, the entire amount deposited in the account can be withdrawn.