In the Post Office PPF scheme, investors receive a 7.1% interest rate per annum.
New Delhi: Post Office offers various secured schemes offering impressive returns to investors. If you’re planning to invest your money in a safe scheme, you can also consider the Post Office Public Provident Fund Account (PPF) scheme.
In the Post Office PPF scheme, investors receive a 7.1% interest rate per annum. One can invest a minimum of Rs 500 to a maximum of Rs 1 lakh 50 thousand in a financial year in the Post Office PPF scheme.
Investors can know more about the Post Office PPF scheme at India Post’s official website at indiapost.gov.in. One can make a lump sum or one-term investment in the policy.
Adult Indian citizens can directly open their PPF accounts. Whereas in the case of a minor, a guardian can open the Post Office PPF account for the individual under 18 years of age.
Moreover, investors can avail of tax benefits against their Post Office PPF investments under Section 80 C of the Income Tax Act. Also, the income made from interest and maturity in the Income Tax PPF scheme is tax-free.
Investors can the maturity payment by submitting account closure documents, including their passbook, at the Post Office. Moreover, they can further extend the maturity period by 5 years to earn additional interest income by submitting the documents at the concerned Post Office.
Investors should also note that they can start withdrawing their funds once a financial year after five years excluding the year of account opening. The amount of withdrawal is capped at 50 per cent of the balance at the end of the 4th preceding year or at the end of the preceding year, whichever is lower
