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 1Hrs 16Min

Public Provident Fund- Invest Rs.500 Per Month & Get Over 1 Lakh After Maturity

The government-backed scheme of PPF is the best investment options one can go for. Learn more about it here!

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Public Provident Fund Video
 
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This course includes

 
Total course length
1Hrs 16Min
 
No of lessons
8 Videos
 
What you learn
Money Management Tips, Completion Certificate
 
 

In today's fast-paced world, securing our financial future is more important than ever. The PPF is a government-backed savings scheme that offers a safe and reliable way to save for the long term. Whether you're looking to save for retirement, a child's education, or a rainy day fund, the PPF is a great option to consider. With its tax benefits and high-interest rate, the PPF is a smart choice for anyone looking to build a solid financial foundation.

 

What is Public Provident Fund scheme?

Public Provident Fund (PPF) is a long-term savings scheme offered by the Government of India. It is a popular investment option among individuals as it offers a number of benefits, including tax benefits and a fixed rate of return. The scheme was introduced in 1968 with the aim of providing a means for small savings and encouraging savings among the general public.

Under the PPF scheme, individuals can open an account with a minimum deposit of Rs. 500 per year and a maximum deposit of Rs. 1.5 lakh per year. The deposits made into the account are eligible for tax deductions under Section 80C of the Income Tax Act. The funds in the account earn a fixed interest rate, which is determined by the government on a quarterly basis. The interest earned on the funds is also tax-free.

One of the key features of the PPF scheme is its maturity period, which is 15 years. However, the account can be extended for a period of 5 years at a time after the maturity period. Another feature of the PPF scheme is that it is a long-term investment option, which means that it is not suitable for individuals who need to access the funds in the short-term.

Overall, the Public Provident Fund scheme is a great option for individuals who are looking for a long-term savings option that offers tax benefits and a fixed rate of return. It is a relatively safe investment option, as the funds are backed by the Government of India and the interest rate is fixed. The scheme is particularly suitable for individuals who are looking to save for their retirement or for their children's education.

 

What will you learn in this course?

In the course on Public Provident Fund (PPF), individuals will learn about the various aspects of this government-backed savings scheme. The course will cover topics such as how to open a PPF account, the different investment options available, the tax benefits associated with investing in PPF, and the rules and regulations that govern the scheme. Additionally, the course will also cover the various ways in which an individual can withdraw or use the funds from their PPF account, such as for educational or medical expenses. Overall, the course on PPF will provide individuals with a comprehensive understanding of this savings scheme and how it can be used to secure their financial future.


 

What are the benefits of PPF?

One of the main benefits of PPF is that it offers a fixed rate of return, which is determined by the government. This means that you can expect a steady and reliable return on your investment, without having to worry about market fluctuations.

Another benefit of PPF is that it offers tax benefits. The money you invest in PPF is tax-deductible under Section 80C of the Income Tax Act, which means you can claim a deduction of up to Rs 1.5 lakh from your taxable income. Additionally, the interest earned on your PPF investment is tax-free.

PPF is also a great option for long-term savings and retirement planning. The investment has a lock-in period of 15 years, which means that you cannot withdraw your money before this time. This can help you stay committed to your long-term financial goals and avoid the temptation to withdraw your money prematurely.

Finally, PPF is a great option for those who want to save money for their children's education or marriage. The investment can be transferred to the next generation and also can be used as a collateral for loan.

Overall, PPF is a safe, reliable, and tax-efficient investment option that offers a range of benefits to those who choose to invest in it. It is a great option for long-term savings, retirement planning, and meeting other financial goals.

 

Who is eligible for Public Provident Fund?

The scheme is open to all residents of India, including individuals, Hindu Undivided Families (HUFs), and Trusts.

To be eligible for a PPF account, an individual must be at least 18 years old. Minors can also open a PPF account, but it must be done through a legal guardian. Additionally, Non-Resident Indians (NRIs) and foreign citizens are not eligible to open a PPF account.

Takeaway

In conclusion, the Public Provident Fund (PPF) is a great investment option for those looking to save for their future while earning tax benefits. It is a long-term investment plan with a maturity period of 15 years and offers a fixed interest rate. The investment amount and interest earned are tax-free, making it an attractive option for those looking to save for retirement or for their child's education. Additionally, the PPF also offers a loan facility and partial withdrawal options, making it a flexible investment choice. Overall, the PPF is a safe, secure and reliable investment option for those looking to save for their future.

 

 

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