PPF Interest rate 2023 : PPF is a famous and safe investment scheme that has been introduced for Indian citizens . It is a long term savings scheme which aims to provide a safe and profitable option to the people to generate income . In this blog post, we will go through the important aspects of PPF in detail and understand its benefits .
What is PPF?
PPF (Public Provident Fund) is a personal savings account provided by the government for Indian citizens . It is a long term investment in which you deposit money and get continuous interest on that money. This scheme is a good way to arrange income along with financial security . PPF Interest Rate 2023
Important aspects of PPF:
1. Long – term investment : PPF account is a long term investment which is for 15 years , which you can compound. This means you have time for long term investments from which you can reap the benefits.
2. Interest rate: The interest rate on PPF account is determined by the government from time to time and the current PPF Interest rate 2023 is 7.1% . This interest rate may change annually but can be availed till the end of the investment tenure. ppf calculator year wise
3. Tax benefits: Both interest and principal amount received on PPF investments are exempt from income tax. Even the interest earned on investment is tax free. PPF Interest Rate 2023
4. Minimum Investment: You need a minimum investment to open a PPF account , which is usually ₹500.
5. A joint destination of savings and investment : PPF is not only a savings scheme , but it is also an investment scheme . Apart from saving your income by investing, you can also give it business potential .
PPF is a safe and profitable investment scheme that provides a great way for Indian citizens to manage financial security and steady income . PPF Interest Rate 2023
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PPF Who can open PPF Account and How to open PPF
1. Local banks: You can open a PPF account by visiting any local bank or financial institution . You are required to fill the application form and submit it along with the required documents like PAN Card, Aadhaar Card, Passport etc.
2. Online : Some banks and financial institutions provide you the facility to open your PPF account online .You can apply by visiting their website and submit the required documents online .
3. Post Office: You can also open a PPF account by going to the post office . There you need to fill the application form and submit the required documents . PPF Interest Rate 2023
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Documents required at the time of account opening:
- Pan card
- Adhar card
- Passport or Voter Id Card ( required only in special situations )
- Address Proof ( Can be on Aadhaar Card )
How to open PPF :
- Visit your selected bank, financial institution or post office .
- Fill the application form for opening PPF account .
- Submit the required documents and complete the application process.
- You will get PPF account details , account number and passbook.
Public Provident Fund PPF Interest Rate 2023 :
1. A person can open only one PPF account . The money of PPF account goes to the government, so this investment is completely safe and guaranteed returns are also available.
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2. The best thing about Public Provident Fund (PPF) is that both the money invested in it and the interest earned from it are completely tax free . This means that you will not have to pay any tax on it . But more than Rs 1.50 lakh cannot be invested in a PPF account in a year
3. PPF Account is closed in this period .This means that you will need to invest money for a long time . PPF Account has a maturity of 15 years .
4. An investment or deposit is required every year to keep the PPF account running . If no deposit is made in the PPF account throughout the year , then the account gets closed . ₹50 penalty will have to be paid for restarting
5. At least ₹ 500 can be invested in PPF Account in a year
6. Currently PPF Interest Rate 2023 is 7.1% , which is compound interest rate on annual basis, and the interest amount is deposited in PPF Account every year in March .
7. We can also get loan from PPF Account . But loan can be availed on PPF account only after three years of account opening till six years of account opening . We can get only 25 percent of our PPF account balance as loan .
8. Loan is available on PPF Account, whose interest rate is two percent more than the interest rate of PPF account . Means, the loan rate on PPF will be 9.10% right now, because currently 7.1 % PPF interest rate on PPF account 2023 l Whereas, if the loan is not repaid in 36 days , then six percent extra will have to be given. PPF Interest Rate 2023