The Public Provident Fund or PPF is a long-term investment scheme. It was launched in 1968 by the central government of India to encourage people to save money. Investing in a PPF is the best way to save money for your retirement.

Open a PPF Account online and start building a financial corpus to support your retirement with just a few clicks. There are several benefits of opening one:

Enjoy Tax Deductions

The investments you make in a PPF Account are eligible for tax deductions under Section 80C of the Income Tax Act. Moreover, the interest earned on your PPF investments is tax-free upon withdrawal. However, note that you can only invest a maximum of Rs. 1.5 lakh in the PPF yearly.

Earn Assured Returns

PPF is a stable investment scheme that does not rely on the performance of the capital markets. Moreover, it offers you an attractive annual interest rate of up to 7% on your invested capital. For example, if you invest Rs. 2,000 per year for 15 years, you are sure to receive Rs. 54,241 on the maturity of your investment. Since a PPF investment provides guaranteed returns, you can easily calculate the amount you will receive at maturity with the PPF calculator.

Earn Compounded Interest Rates

PPF allows you to earn interest on your total account value than the invested amount. For example, if you invest Rs. 2,000 in a PPF Account in one year at an interest rate of 7.1%. Your account grows to Rs. 2,142 by the year-end. If you invest another Rs. 2,000 for the same interest rates in the next financial year, the total sum is Rs. 4,142.

Long term Investment Tool

Due to life’s uncertainties, we often forgo our investment commitments. While this may solve the short-term problem, it severely affects our long-term goals. However, a PPF Account has a minimum maturity of 15 years. When you invest in a PPF Account online, you ensure that your long-term goals are achieved without any compromise.

Withdrawal Flexibility

While the minimum maturity period of a PPF Account is 15 years, you can make a partial withdrawal from the accumulated corpus after completing six investment years. Alternatively, extend the investment tenure by five years if you wish to continue earning interest on your investment after maturity. There are no limits to how much you extend your investment tenure.