indian public provident fund (PPF)

The Public Provident Fund (PPF) is a government-backed savings scheme in India offered by banks and post offices. It's a popular long-term investment option known for its attractive interest rates, tax benefits, and high safety.
Here's a breakdown of key features of the PPF account:
Benefits:
 * Interest Rates: PPF offers competitive interest rates, determined by the government quarterly.
 * Tax Benefits: Investments in PPF qualify for tax deductions under Section 80C of the Income Tax Act. Additionally, the interest earned and the maturity amount from PPF are also tax-exempt.
 * Safety: PPF is a safe investment as it's backed by the government of India.
 * Maturity Period: The maturity period for a PPF account is 15 years, with an option to extend it in blocks of 5 years.
Eligibility:
 * Any Indian citizen can open a PPF account, including minors (on whom a guardian can open the account).
Investment Limits:
 * The minimum annual investment in a PPF account is Rs. 500, and the maximum is Rs. 1.5 lakh.
Things to Consider:
 * Lock-in Period: There's a lock-in period of 15 years for a PPF account. Partial withdrawals are allowed under certain conditions after the completion of 5th year.
 * Returns: PPF offers guaranteed returns, but they may not always keep pace with inflation.
Overall, the PPF account is a suitable investment option for individuals seeking a safe, long-term investment with tax benefits. It's ideal for retirement planning or saving for specific long-term goals.

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