Thursday, March 7, 2013

Public Provident Fund (PPF) - Savings Investment Plan


Here is a latest Savings Investment Blog posting on Public Provident Fund (PPF). You can find and learn best advantages and few disadvantages this saving investment scheme offering by Post Offices and Banks.


PPF Public Provident Fund is the best investment tool in current days. You can include happily in your financial strategy. It is highly popular investment scheme for long-term returns profits and providing multiple benefits like secure investment also tax benefits for every year etc. 

Public Provident Fund (PPF) Advantages-Benefits:


Before opening Public Provident Fund (PPF) account, find following advantages of PPF scheme investment 


  •         Period is 15 years.
  •    Offering interest rate is at 8.80%.
  •         This PPF interest rate is compounding annually.
  •          PPF Minimum investment is Rs.500 (INR)
  •         PPF Maximum investment is Rs.1,00,000. (1 lakh INR)
  •          PPF investment is fit for tax deduction under Section 80C
  •          Also the maturity interest receiving is tax exempt.
  •          You can open only one Public Provident Fund (PPF) account
  •          If you open any second PPF account on your name, the second account will be rejected.
  •         It is not best practice of opening a PPF account in joint.
  •         Here there is an exception is there. That is opening a PPF account on partner name or any minor child kid name.
  •        Annually 12 installments with planned investment amount
  •         The investment cannot be recovered for your any debt.  
  •         To open PPF account, there are multiple sources available like Post Offices or Banks (Both Nationalized or Private Banks)
  •         PPF account can be transferred from one location to another location.
  •         It can be transferred among the PPF scheme providing institution.
  •         You can get loan on investment amount


Public Provident Fund (PPF) Disadvantages:


Before opening Public Provident Fund (PPF) account, consider following PPF investment disadvantages


  •         NRI people are not eligible to open new PPF account. If already an account exists, they can continue till its maturity period.
  •         Nominees cannot endure or continue the deceased PPF account resulting in case of account holder death. But the nominees can get paid.  
  •          Nominee need to provide identity proofs to claim or receive the amount if more than 1 Lack INR.
  •          To activate the deactivated PPF account, it needs to pay Rs.50 as penalty amount.
  •          PPF account can get deactivated in case of fail to contribute the minimum PPF installment amount in any year.
  •          PPF account cannot be transferred from one name to another person name.
  •          There is no guarantee on interest rates applicable for coming years.
  •         If the invested amount is more than 1 lakh rupees, the amount is eligible for tax deduction.
  •          If you bear investment risks then PPF scheme is not a good option to choose and plan investment.
  •     It is not a best option for short term investors.
  •     15 years tenure period for maturity  

  1. Here some more detailed information on Public Provident Fund (PPF).
  2. Can you believe with PPF investment, you can become a milliner too?
  3. Get detailed information on how to become milliner with PPF savings plan.

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