Post Office Schemes: It is very important to invest for saving (Best Investment Plan), but it is more important to invest in right place and right scheme. If you are also making a plan for investment then Public Provident Fund can be a good option for you. The best thing is that you can start investing in PPF account with 500 rupees. You can open a PPF account in a post office or bank. It gives a return on your deposit at a fixed rate. The special thing is that there is no risk of any kind in it. At the same time, tax is also available on the returns that are received.
Benefits of public provident fund
Interest is being paid at the rate of 7.1% annually on the amount deposited in the post office public provident fund. Individuals can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a financial year. You can deposit money in the scheme in lump sum or in 12 installments. The maturity period is 15 years. The deduction in PPF account can be claimed under Section 80C of the Income Tax Act. The interest paid on it is completely tax free.
Extensions for 5 years
Public Provident Fund account matures in 15 years. However within one year of maturity it can be extended for 5–5 years. For this, one year has to be increased before the maturity is completed. Money cannot be withdrawn from this account in PPF account for 5 years. After 5 years, money can be withdrawn by filling Form 2.
No joint account option
In this you do not get the option of joint account. That is, you can open only a single account in it. In this, PPF account can be opened in the name of minor or mentally challenged person.