What is PPF (Public Provident Fund)

PPF stands for Public Provident Fund. First time year on 1968 By the Finance Ministry’s National Savings institute offered PPF account especially for to the individual public. All are the individual whose residents in India can go with the PPF Account.

Basically It’s a long term (15 Yrs) investment plan & the most important part of this plan is it is totally tax-free saving scheme as well free of a risk investment plan. We have to option to set here our investment monthly, quarterly & half-yearly and yearly.

Mainly the most important reason for its very popular in human being due to the good compound rate of interest as well as safety, returns and tax savings. 

Nowadays PPF investors used it as a tool to build themself for their retirement by putting some lump sum fixed amount for live a life easily.

Actually whenever we have to compare PPF account with LIC Returns, officially rate of interest is better according to the LIC. LIC rate of interest is always around 6-8% where PPF offers 8.7%.

Due to the popularity of PPF account, it is the most important tools in human being to be like. It can be opened at Post Office or any nationalized banks and major private bank. In this account we should contribute a minimum for Rs.- 500/- & maximum 1,50,000/- annul.

Criteria eligibility to whom open PPF Account

• Any individual who lives in Indian can open one PPF account
• NRI is not eligible to open
• A resident Indian has become an NRI after maturity of account it should be closed.
• Parents/guardian can open PPF accounts for their minor.
• Open of joint accounts 
• Not allowed for multiple accounts

Documents required at the time of open an account

1. Form A (PPF account opening form)
2. ID proof
3. Address proof
4. Photograph of the account holder
5. Nomination form

Benefits of opening a PPF Account

• Nothing is Risk in this account
• Tax-free investment
• Tax Rebate under 80 CC under 1.5 Lacs
• Principle & interest amounts are guaranteed safe.
• Interest should be always higher than FD rates on any banks.
• The interest rate should be (compound rate) 
• Flexibility

Disadvantage:-

• It is no Risk/Insurance coverage.
• It has a locking period of 15 yrs
• Only individual can open a PPF account, not any firm or company.
• Maximum limit is just 1.50 lakh in a financial year 

Whenever we have to see the analyses of PPF account, then we say It’s a good long term investment plan to return maximum rate of interest & after retirement & its is useful for live a long life. Therefore, every individual should have (PPF) Public Provident Fund account.