Categories: PPF

Public Provident Fund (PPF)

The Public Provident Fund is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits. PPF has a maturity period of 15 years, which means your investment is locked for this period. However, under certain conditions, you can withdraw your money prematurely. The interest earned on deposits in the PPF account is not taxable. Moreover, the principle amount is backed by sovereign guarantee, making it a safe investment.

Features and Benefits of PPF

Features: PPF is a government-backed, long-term savings scheme with a 15-year maturity period. It offers attractive interest rates and tax-exempt returns, encouraging regular savings and financial discipline.

Benefits: PPF aids in building a substantial retirement corpus. The high-interest rates coupled with the power of compounding make it an excellent choice for risk-averse investors looking for reliable returns.

Akshatha Sajumon

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Akshatha Sajumon

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