PPF account in Mumbai
Till date, the PPF or the Public Provident Fund is one of the most chosen money saving account selected by the Indians. Almost every person uses such kind of account. But, the real fact is some really know what are the benefits and they have got a proper knowledge of the whole thing. While others just follow the leads and they don’t have a sufficient knowledge about the total PPF story.
As far as concerned, it is the most popular source of saving money in India. If you are really looking after something that can save your money and at the same time you don’t want to pay taxes, well you are at the right doors. Moreover, the maturity amount that you will get will also not bear any kind of application of the tax. So, these are some of the main and the key advantages of the PPF and this is the reason why every Indian likes to have a PPF account and spends a few portions of their income every year.
Now, let’s talk about some technical knowledge about the PPF. Do you have a proper knowledge on how the interest rates change? And moreover, do you also know the fact that you cannot spend this money in any kind of debt or liability? It means that the entire amount is yours and you cannot have a loan from this amount.
Let’s start with some facts about why people in Mumbai use the PPF accounts.
- Mumbai is a place in India where you definitely need a good amount of money in your pocket; otherwise it is very difficult to survive. If you are thinking to start your future in Mumbai and settle there, you should definitely go for a PPF account. During a long run, when you are going to retire, this PPF account will help you out with decent maturity amounts and tax benefits.
- This account is created with not less than 15year lock. In other words, you can say that it is the long-term investment in India.
- In these 15 years, you can also get loans for buying houses, car or setting up your kid’s marriage as you are having a long-term PPF savings. The bank will provide you a loan for your child’s higher studies. So, it has got more than one benefits.
- The investment can range from Rs. 500 to Rs. 1 lakh per annum. So, you don’t have to worry much if your income is more or less because you will have to make a proper savings policy depending on your income.
- The interest rates are 8.8% and there are some possible chances that it may increase the next year. So, it is always a happy moment for the beneficiary.
- The interest rates dropped from 12% to 8.8% over last 30 years. But then, 8.8% per annum is also a great deal for the customers.
- An NRI can’t have an account like that as under the Indian constitution, he cannot have such rights.