The Public Provident Fund (PPF) is a popular long-term savings scheme offered by the Indian Government. It allows individuals to invest money and earn tax-free interest within a specified limit on their contributions. The main benefits of PPF are:
- Tax Benefits: The contributions made to PPF are eligible for tax deductions under Section 80C of the Income Tax Act.
- Fixed Interest Rate: The PPF offers a fixed, attractive interest rate, which is set by the Government and is compounded annually.
- Long-term Investment: PPF has a maturity period of 15 years, providing a stable and secure option for long-term savings.
- Withdrawal Options: Partial withdrawals are allowed after the completion of the 6th financial year, offering liquidity in case of emergencies.
- Low Risk: PPF is backed by the Indian Government, making it a safe and low-risk investment option.
- Accessibility: PPF accounts can be opened at designated post offices and authorized banks, making it accessible to a wide range of individuals.