PPF (Public Provident Fund) is a long term saving plan through which any Indian Resident can secure his/her future through small scale contribution. A PPF account can be opened for anyone irrespective of age group and normally matures after 15 years, which could be further extended in multiple of 5 years. You also get very good Interest Rate in Public Provident Fund acount.
PPF is a wonderful scheme through which you can save whatever you have and let the money grow at a decent rate of interest. PPF offers the highest interest rate among all other small saving options in India.
Interest Rate in Public Provident Fund
The current Interest Rate in Public Provident Fund is 8 per cent for FY 2016-17, to be compounded yearly. The Interest Rate in Public Provident Fund is decided by government of India and keeps on changing after regular intervals and the rate is primarily based on market performance.
Interest rate is often a parameter on which lot of investors decide before putting on their hard earned money in the investment. A decent interest rate means your money grows at a better pace and the sum assured is higher.
The interest paid on your PPF account is paid at the end of every financial year, i.e. 31st March. This interest gets added to your PPF account and acts as a principal amount for the next fiscal year.
PPF is also a great scheme for those looking for a promising long term investment option with tax saving. PPF enjoys a complete EEE exemption from Income Tax Department. EEE tax exemption means the principal PPF amount, the interest accrued on your PPF account and the proceeds of your PPF account are all exempted from Income Tax under Section 80C.
Along with a interest rates, what is more appealing about PPF is that you can withdraw money from your PPF account whenever you need it. You can avail loan against your PPF account from the 3rd year and withdraw substantial amount from your PPF account after 7th year.
To open a PPF account, you can contact any bank or financial institution and any of the post offices and provide necessary KYC docs along with the first contribution cheque.
In the article Interest Rate in Public Provident Fund, we have to discuss about the Interest Rate in Public Provident Fund or PPF account. If you have any query read our article Public Provident Fund FAQ or send us comment.
Some More PPF Related Articles