Friends, you must have heard about the Public Provident Fund. If you have not heard and do not know about it, then you read this article carefully and lie till last because inside this article I will give you complete information about it.
What is Public Provident Fund?
PPF account is an investment option. In this account, you can get a tax rebate under Section 80C for investments up to Rs 1.5 lakh per annum.
And there is no tax on the interest earned from it. And the amount received on maturity is also not covered by the tax. PPF account has a lock-in of 15 years.
That is, you cannot withdraw money before 15 years. The PPF scheme is run by the government through its post office and banks.
Public Provident Fund Account Interest Rate.
The interest rate on PPF is much higher than the bank’s fixed deposits. Just like we get an interest rate of around 6% in FD, the same PPF interest rate is 7.1%. That is, we get interesting in 7 to 8% on it.
The government keeps changing the interest rate of PPF every three months.
You are required to interested at least ₹ 500 every year in a PPF account and you can deposit up to 1.5 lakh rupees for 1 year.
How to open the Public Provident Fund account?
You can open the PPF account in the post office or SBI bank. Most people open in the post office itself.
Do I have to provide all documents?
You only have to provide 4 documents.
1. Passport Size Photograph
2. Account opening form.
3. Residence certificate.
4. Identity card.
I have given you complete information about what PPF is and how it works. In this article, you will read this article carefully and understand it till the last time and hope that you have understood it.
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