PPF is a great investment option in India. Through this a person can save a lot of tax. However, there are many other reasons due to which it is quite popular in India.
Public Provident Fund (PPF) is a great investment option in India. Through this a person can save a lot of tax. However, there are many other reasons due to which it is quite popular in India. If you too are thinking of investing in any tax-saving instrument, then this news is for you. Let us take a look at this.
Triple tax exemption: You get triple tax exemption in PPF, which ensures that investments, earnings and maturity income are completely free from taxes.
Guaranteed Returns: Backed by the Government of India, PPF offers stable and attractive interest rates, which currently stands at 7.1% per annum (till January 2024). This can prove to be very beneficial in the long term.
Long-term investment: The mandatory 15-year lock-in period promotes disciplined savings and helps individuals achieve sustainable financial goals such as retirement.
Flexibility: After the 7th year, PPF allows partial withdrawals. Loan can be obtained against the remaining amount after the third year.
Open PPF account like this
To open a PPF account online, it is necessary to have a savings account in a participating bank or post office. Apart from this, you should also be connected to internet banking or mobile banking services.
- Access your account through Internet Banking or Mobile Banking platform.
- Click on “Open PPF Account” facility.
- If you are opening an account for yourself, select the “Self-Account” option. Alternatively, select the ‘Minor Account’ option if you are opening an account on behalf of a minor.
- Enter the required details in the application form and double check the accuracy of the information entered.
- Specify the total amount to be deposited in the account for each financial year.
- submit application. An OTP will come on your registered mobile.
- Enter the OTP you receive to verify your identity.
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