PPF account: Public Provident Fund (PPF) is a great investment option. Indians like this scheme the most. The reason for this is the benefits available on it. Whether it is a matter of interest or from tax free investment to the amount received on maturity.
PPF account: Public Provident Fund (PPF) is a great investment option. Indians like this scheme the most. The reason for this is the benefits available on it. Whether it is a matter of interest or from tax free investment to the amount received on maturity. In every respect, it is the best tool for investment. The maturity period is of 15 years. But, even after 15 years many benefits are available.
Today we are going to tell you 3 such benefits, after which you will also plan to invest. The biggest advantage of the scheme is that whether you put money in it after maturity or not, you will continue to get interest. You have 3 options on maturity of PPF account. By choosing any of these options, you can increase your money further.
1. Withdraw PPF money on maturity
On the maturity of the PPF account, withdraw the amount you deposited in it and the interest earned on it. This is the first option. In case of account closure, your entire money will be transferred to your account. The special thing is that the money and interest received on maturity will be completely tax free. Also, no tax will have to be paid on the number of years you have invested.
2. Invest in PPF even after 15 years
Another advantage or option is that you can further extend your account on maturity. Account extension can be taken in the tenure of 5-5 years. But, keep in mind that the extension has to be applied for 1 year before the maturity of the PPF account. However, you can withdraw money during the extension. The rules of pre-mature withdrawal do not apply in this.
3. PPF account will continue even without investment
The third biggest advantage of PPF account, even if you do not choose both the above options, your account will continue to run after maturity. It is not necessary that you invest in it. Maturity will automatically increase for 5 years. The good thing is that you will keep getting interest in it. Here also the extension of the period of 5-5 years can be applicable.
Where can open PPF Account?
PPF account can be opened in any government or private bank. Along with this, you can also open an account in any post office of your city. Minors can also open accounts, but the holding of parents on their behalf will remain for 18 years. However, as per the rules of the Finance Ministry, a Hindu Undivided Family (HUF) cannot open a PPF account.
How much money will you get on how much investment
At present, 7.1 percent interest is being received in Public Provident Fund. With this rate of interest, if you invest for 15 or 20 years, then a big fund can be created.
How much money is received on maturity?
Investment (in rupees – How much money will – How much money will get
/month) get after 15 years after 20 years
- 1000 3.25 lakh 5.32 lakh
- 2000 6.50 lakh 10.65 lakh
- 3000 9.76 lakh 15.97 lakh
- 5000 16.27 lakh 26.63 lakh
Note: The above calculation is given as an estimate. The interest received on PPF is reviewed every 3 months, it may change…
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