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Who does not want to keep their hard-earned money safe and at the same time want their money to grow? The answer is obvious. Everyone does. 

Who does not want to keep their hard-earned money safe and at the same time want their money to grow? The answer is obvious. Everyone does. But the question is- how to achieve that? Don't worry, we will tell you how. 

Often we see people investing in some fund schemes which promise to double their money in a few days, few months or a year or two. Remember the Bollywood movie Phir Hera Pheri? 21 din mein paisa double. What happens when our most loved Babu Bhaiya, Raju and Shyam falls into that trap? We are sure everyone knows. They all become losers in the greed of doubling their money to become crorepatis in 21 days. When someone or some (financial?) company tells you to invest in their magic schemes(?) which promises to provide 15-20% returns in a year, it may sound very pleasant and alluring and tempt you to put your hard earned money. But in reality it hardly happens. In fact there is 99.99% likelihood that your money will vanish in thin air just like magic.

To avoid such a situation and to guide you to invest smartly and wisely BodolandJobNews.Com has brought to you a new guide series on Small Savings Scheme meant for both low-income groups as well as high net worth individuals. 

In this first guide, we will tell you about Public Provident Fund or in short PPF. The salient features, its eligibility, returns, tax benefits and most of all why should you invest in PPF or Public Provident Fund will be covered in this article.

  • What is PPF or Public Provident Fund?
PPF or Public Provident Fund was introduced in 1968 by the Ministry of Finance (Department of Economic Affairs) in India with the objective of making small savings in the form of investment and to provide decent returns on that savings. To invest in PPF one should open a PPF account and individuals can open it either at post offices or at nationalized banks or some private banks which allows opening of a PPF account.

  • Salient Features of PPF or Public Provident Fund
➤Minimum Investment Rs.500/- and maximum up to Rs.1,50,000/- in a financial year.
The investors have the liberty to make deposits in lumpsump or in 12 installments.
A minimum deposit of Rs.500/- is mandatory in each financial year.
Tenure of the PPF is 15 years.
Self-employed as well as salaried individuals can make investments.

  • Eligibility for opening a PPF account
Resident Individuals. 
Guardians on behalf of minors or a person of unsound mind.
NRIs are not eligible.

  • Returns
The interest rate is determined by Central Government on quarterly basis. Rate of interest for April-June quarter is 7.1% for the financial year 2020-21 w.e.f 1st April, 2020.

  • Tax benefits
Investment made up to Rs.1,50,000/- per annum qualifies for Income Tax rebate U/s 80C of IT Act.
Interest accrued on investment is completely tax free.

  • Why should you invest in PPF?
Being an ideal investment option for both self-employed as well as salaried individuals with a minimum investment amount of just Rs.500/- per annum with decent interest rate, investment amount, as well as interest earned on it being tax free, should definitely be a sufficient reason to make investment in Public Provident Fund (PPF). Above all, this scheme is implemented by National Savings Institute under the Ministry of Finance, Govt. of India so you need not worry about your hard-earned money. It’s safe and secure.

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