Small Saving Scheme: If you are planning to invest in Public Provident Fund, then you should get the best information about it. So that later you do not have to face any problem. Public Provident Fund (PPF) is a long term investment scheme which comes under small savings schemes. It provides adequate returns to investors with a maturity period of 15 years which can be extended for an additional 5 years. Any person can invest up to Rs 1.5 lakh annually in this scheme.
To maximize the returns in this scheme, it is advised to deposit money before 5th of every month. Depositing money after the 5th of the month may result in loss of interest for that month. For example, if a person deposits Rs 1.5 lakh in PPF on April 20, he will get interest only for 11 months in the financial year, resulting in a return of Rs 9,762.50 for the year 2023-24.
On the contrary, depositing the same amount on 5th April would earn a profit of Rs 10,650 for the same period. The PPF interest rate remains constant at 7.1 per cent for the extended period. The government sets the interest rate each year, which is later credited to the account on March 31 but is calculated monthly.
ppf scheme best option
The PPF scheme is one of the best options to save tax, with a maximum investment limit of Rs 1.5 lakh. Since it comes under small savings schemes, it is tax-free. This scheme is one of the best options for individuals who are planning to invest for retirement or for the long term.
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