Public provident fund (PPF) is considered the best scheme for making better profits by investing without any risk. In this way, this scheme is also one of the best schemes of the post office, but it can be opened in banks also. It is more convenient for people who have a savings account in the same bank where they invest in PPF.
Now Punjab National Bank (PNB) can also be invested by opening a PPF account. For those who already have an account with Punjab National Bank, it would be better to invest in PPF there. Punjab National Bank has given information by tweeting that PPF accounts must be opened in the bank to get attractive interest and tax-free returns.
PPF is a central government scheme. There is a better return in this, as well as there is no risk in any way. A maximum investment of Rs 1.5 lakh can be made in a PPF account in a financial year. Also Read: Big Update From Credit card: If you do not have a credit history, you will still get a credit card, know how?
While investing in PPF scheme provides guarantee of better returns, investors also get the benefit of tax exemption under section 80C of Income Tax Act. The sovereign guarantee of the Central Government is available in this scheme. Therefore, the money invested in it is always completely safe.
An account can be opened in Punjab National Bank under the PPF scheme in its own name or in the name of a minor as well. In this, the account will have to be operated as a guardian until the minor becomes an adult.
A minimum deposit of Rs 500 is required in a PPF account. A maximum investment of Rs 1.5 lakh can be made annually in this scheme. It can also be invested every month. In this way, there is an opportunity to invest 12 times a year.
If someone invests more than 1.5 lakh rupees in PPF account, then they will not get the benefit of interest on extra deposit amount. In addition, there will not be any tax rebate on the additional deposit amount.
The maturity period in PPF scheme is 15 years. But it can be extended for 5 years and higher returns can be obtained on it. After maturity, the scheme will have to be applied in the bank for another 5 years.
Interest is being paid at the rate of 7.1 percent annually on the amount deposited in PPF account. Interest is paid every year in the month of March. In addition to Punjab National Bank, PPF account can be opened in Post Office, State Bank of India, Canara Bank, ICICI Bank and HDFC Bank.
