Until March 31st, you can invest in PPF and receive a 7.1% interest rate. Learn about seven unique aspects of PPF investing here.
There are now less than fifteen days remaining to invest in tax-saving opportunities for the 2023–2024 fiscal year. This work must be completed by March 31, 2024. PPF schemes are a good option if you want to invest safely and save taxes at the same time.
Presently, the PPF account offers an annual interest rate of 7.1%. In addition, your PPF account offers you the ability to borrow money. We're going to tell you about seven of these unique PPF facts. in order for you to profit from your investment in this scheme as well...
1. Government security is guaranteed: PPF is directly governed by the central government, which also sets interest. As a result, there is a total guarantee of security for scheme investments. Investing in PPF is the best option if you're looking for a good return on investment with tax exemption. Only the Senior Citizen Scheme and Sukanya Samriddhi Yojana offer higher returns than PPF. Still, not everyone is able to finance this.
2. Take advantage of the tax exemption.
PPF investments fall under the EEE category. This implies that the full amount of your investment in the scheme is tax-exempt. Aside from this, there is no tax due on the total amount invested in this scheme or on the interest earned from it. The amount received upon maturity is tax-free.
3. A PPF account can be used to access loan facilities.
Loans against deposits made into PPF accounts are also available. From the end of the fiscal year in which you opened your PPF account until the end of the fifth fiscal year, you are permitted to borrow money from PPF.
If you opened a PPF account in January 2019, you are eligible to borrow money between April 1, 2020, and March 31, 2024. A maximum loan of 25% may be obtained against the deposit. The loan's effective interest rate is just 1% higher than the PPF's interest rate. Either a lump-sum payment or two monthly installments are accepted for the interest.
4. You are able to invest for an unlimited amount of time.
A PPF account's maturity period is 15 years. But you are free to prolong it as long as you like. The account holder may choose to extend their account after it matures if they do not require money right away. This will assist you in making more money.
5. It's simple to run the plan.
You must invest a minimum of Rs 500 in this scheme annually. That is, if you ever find yourself in a tight spot financially. Additionally, you can invest up to Rs 1.5 lakh in it in a year. In a fiscal year, you are limited to 12 installments of deposits. It currently receives an annual interest rate of 7.1%.
6. The child's name may also be used to open an account.
Any individual can open this account in their name at any bank or post office. In addition, any other individual may open the account on the minor's behalf. Only one child may have a guardian open a PPF account in their name.
7. Large sums of money will be made with ease.
After fifteen years, if you invest Rs 1,000 per month through this scheme, you will receive Rs 3,18,000 in return. On the other hand, if you invest Rs 2,000 per month for 15 years, you will receive Rs 6,37,000.