Public Provident Fund (PPF) has always been considered one of the best and safest investment options. This is such a way of investment, on which you get guaranteed interest, but it also helps in tax saving. The interest rate in PPF is decided by the government every quarter. Interest is earned on the investment made by you in Public Provident Fund and that interest gets added to your principal. In this way, next time you will get the benefit of interest on the principal amount linked to this interest, which simply means that you get the benefit of compounding interest under it. At present, you get the benefit of 7.1 percent interest on investment under PPF.
PPF scheme is a Small Savings Deposits scheme, that means you can put money in it only up to a limit. You can open your Public Provident Fund account through post office as well as through bank. PPF scheme is a scheme supported by the Government of India. Since this scheme is a small savings scheme, due to which the investment limit has also been fixed in it, that is, you can invest only up to a limit in every investment scheme under it. There is no tax on the interest earned under this. Apart from this, investment and maturity under PPF have also been made tax free. Through this plan, you get facilities like fixed income and taxation benefits.
Any Indian citizen can open his account under Public Provident Fund and start investing in it. Under this scheme, a minimum amount of Rs 500 and a maximum amount of Rs 1.5 lakh can be invested in a year. You can open your PPF account through all types of banks and even post offices. To open an account, you must have all the necessary documents, after which you can open your account by filling PPF.