The Public Provident Fund is the only instrument that is quite different from other instruments. This is such an instrument, where not only the money is safe, but the investment is getting good returns as well.
Money is there but where to invest. There is no one to show the right direction. If there are so many sources of investment, then there is also confusion. In such a situation, which product will give you more benefit and how? It is important to understand this. Public Provident Fund is the only instrument that is quite different from other instruments. This is such an instrument, where not only the money is safe, but the investment is getting good returns as well. PPF is a means of investment that makes it different from other small savings schemes. So what benefits do you get .. Why is this investment product different, let us know…
1. Great interest
There was a time when fixed deposits were considered to be the best in terms of interest and security. But now, if we talk about the returns, then at this time the most benefit is found in the Provident Fund (EPF), where there is 8.50 per cent interest. This fund is meant for private and government employees. A similar product was started for the common public, Public Provident Fund i.e. PPF. PPF coming under Small Savings Scheme is currently getting 7.1 percent interest. Interest rates are fixed on a quarterly basis.
2- Rebate in income tax
Income tax rebate is also available on investment in PPF-Public Provident Fund. Section 80C of the Income Tax Act gives a maximum rebate of up to 1.5 lakh rupees on PPF investment. The most important thing about PPF is that the money earned on interest and maturity earned in the scheme remains completely tax free.
3- Guarantee of government security
PPF directly regulates PPF and this interest is also decided by the government. Therefore, there is a complete guarantee of security on investment in the scheme. If you are looking for an investment with tax exemption and good returns, then investing in PPF is best. Higher returns than PPF are available only in Sukanya Samriddhi Yojana and Senior Citizen Scheme. But, not everyone can invest in it.
4. Advantage of compounding interest
Investing in PPF is considered beneficial. Because, the interest received on this varies on a quarterly basis. Meaning if you get less interest in a quarter, you may get more interest in the next quarter. Also, interest on interest i.e. Compounding interest also continues to be benefited.
5- The more time you spend, the bigger the fund will be ready.
Most people believe in running the investment for a long period. The advantage of this is that your regular investment helps you in preparing a big fund. For example, if someone has invested 1 lakh rupees every year in a PPF account, then in 15 years your investment will be 15 lakh rupees. Interest on this will earn 12,12,139 rupees. That means, with the investment in the scheme, you will have a total deposit of 27 lakh 12 thousand 139 rupees.
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