Suspense Crime Sach Ka Dam
[ad_1]
Public Provident Fund Latest Updates: Public Provident Fund (PPF) is the most popular scheme at present. Long term investment in this scheme is giving good returns. The interest rate offered in this scheme is reviewed every three months. At present, 7.1 percent interest rate is being offered under the PPF scheme. Although there are many advantages of this scheme, there are some drawbacks as well. Know that
Less than EPF interest rate
The interest rate offered in PPF scheme is lower than the interest rate of Employees Provident Fund (EPF). PPF is not very attractive for PPF employees. Higher amount can be allocated in EPF through Voluntary Provident Fund (VPF) for better income and tax benefits. The current EPF rate is 8.15 per cent. Currently the interest rate of PPF is 7.1%. Many salaried people invest in PPF to reduce their taxable income. But by investing in VPF, you can earn more interest than PPF and also get tax benefits.
long lock in period
PPF account takes 15 years to mature. It is good for those who want to invest for long term. But this scheme is not useful for those who expect short term gains. If investors need money urgently.. there is no option to borrow money.
Fixed Maximum Deposit Limit
You can deposit a maximum of Rs 1.5 lakh in a PPF account in a financial year. Employees who want to deposit more than Rs 1.5 lakh in a financial year will not benefit much.
Strict withdrawal rules.
There are strict rules for sudden cash withdrawal from PPF. Limited to one withdrawal per financial year after five years excluding the year of account opening. Premature closure is permitted only after five years subject to one per cent interest deduction.
If you want to close your account..
==> Account holder or spouse or dependent children can be closed if suffering from terminal illness.
==> For higher education of the account holder or his dependent children..
==> One percent interest is charged from the time of account opening. In the scheme, PPF account holders can continue the account by depositing Rs 500 in each financial year instead of pre-closing.
