Public Provident Fund
Public Provident Fund has been one of the most reliable investment avenues as PPF schemes are regulated as per the guidelines of Central Government. PPF accounts are opened in a scheduled commerical bank or Post Office and earns good rate of interest.
Main Features of PPF are as below:-
- An individual (Indian citizen) can open PPF A/c in his own name or in the name of his/her minor child. However, deduction under this section can be claimed for any payment made towards his own account/spouse/account of any child.The initial tenure of PPF A/c is for 15 years. The subscriber can get it extended for 1 or more blocks of 5 years each.
- Minimum Deposit Amount:- Rs. 500 per annum
- Maximum Deposit Amount:- Rs. 1,50,000 per annum
- Interest is paid on quarterly basis as per rate determined by Central Government. Present Rate: 7.1% p.a.
- Partial withdrawals from the PPF A/c are permitted after 7th year.
- Interest income on PPF is exempt under Income Tax Act.
