The PPF account is supported by the Government of India. This is the reason that things like Risk.Free, Guaranteed Return and Capital Protection are available.
Usually people do not think of the future, they have to bear the brunt of it later. There are many schemes in which you can secure the future by investing. One of these is the Public Provident Fund (PPF) scheme.
To open a PPF account, you only have to spend 100 rupees. At the same time, a financial year can invest at least Rs 500 and maximum Rs 5 lakh. The minimum time period of a PPF account is 15 years. This means that once the account is opened, the investment is locked for 15 years. Account holders can extend the time period of their account for another 5 years.
Let us tell you that PPF account is supported by the Government of India. This is the reason that things like Risk.Free, Guaranteed Return and Capital Protection are available. This is to say that you can open this account at a slight risk. Currently, the PPF interest rate has been reduced to 7.1%. Let us tell you that the government reviews this interest on a quarterly basis.
There is no tax on withdrawing the interest earned on the PPF account along with the amount invested in it. In some circumstances, after completion of 5 years, you can choose to close the account. These circumstances include medical emergency.
Apart from this, it is also allowed to close prematurely for higher education. Do not think about PPF in such a way that you have to put money once in a year. If you keep in mind some small things or say tips about investing in PPF, then it can get more benefit.