Why you should contribute to the provident fund

The public provident Fund (PPF) Scheme is the best and most popular investment option available to everyone. It is a kind of retirement fund which is managed by the Central Government. The money transferred to the provident fund on a monthly basis is not too high which is why people spend their days using hra tax exemption calculator since the money that could be saved on the exemption is high. See more. However, if you look at lifetime savings the money saved in the provident fund beats everything else. Nowadays, maximum people should prefer investing their money in PPF as it offers the following benefits:

  • Great returns

It’s important to note that unlike other investments such as mutual funds or stocks, PPF does not require a high initial investment and it has a low-risk profile. The returns vary from one year to another but over the long run, it’s been found that this investment gives very good returns for such an insignificant initial outlay.

The PPF interest rate is over 7.1% per annum, which makes it one of the best options for retirement savings in India. This means that you can earn a good return on your investments without having to worry about inflation or other factors affecting the stock market.

  • The interest earned is tax-free

The interest earned by the PPF scheme is completely tax-free. However, if you invest in a bank account or mutual funds, you will have to pay taxes on your investment. The same rule applies to PPF investment as well. With the help of this scheme, you can earn interest-free of any type of tax and enjoy the benefits of it.

  • The investment amount is flexible

Unlike other investments where usually the premium is large and static in the case of PPF the investment amount that you choose to add to your PPF account depends entirely on you. At a maximum, you can invest Rs 1.5 lakh annually in your PPF account./ You don’t need to pay the entire amount at once. You can invest in up to 12 instalments. But the most interesting part is that the minimum amount is only Rs.500 so anyone can invest.

  • Online Maintenance

PPF accounts are maintained online, which means that you don’t have to visit a bank branch or post office to deposit your money or withdraw it. The government facilitated access to the PPF account for the account holders so they can view their financial records. This will help them in maintaining the details of their accounts and also transfer money from time to time, as per the need. You can monitor your account balance and other details through any internet-enabled device like a mobile phone, computer or tablet.

  • Not affected by stock market

The interest earned on your savings is not influenced by stock market prices because the corpus is invested only in central and state government securities with fixed rates of return and maturity periods ranging from 10 to 15 years. 

  • Safety

If you have ever tried using ppf calculator post office based you would know that the potential of saving money is extremely high. Investing in a PPF scheme is a good way to protect your money from inflation and other risks. The money will be safe with you for the long term because it will earn interest. So, you can use this money whenever you need it and get a full return on it when you exit the scheme. The government has taken a number of measures to ensure that your money is safe in the PPF scheme. There are several security features that ensure that your money remains safe and secure.


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