Public Provident Fund (PPF)
The PPF account, also known as the Public Provident Fund programme, is one of the most popular long-term saving-cumulative-investment options, owing to its mix of safety, returns, and tax benefits.The National Savings Institute of the Finance Ministry introduced the PPF to the public in 1968. It has since evolved as a potent tool for generating long-term profit for investors.Investors use the PPF to establish a corpus for retirement by putting money aside on a regular basis over lengthy periods of time (PPF has a 15-year maturity, and the facility to extend the tenure).
The PPF is a popular choice among small savers due to its attractive interest rates and tax benefits.The PPF is popular because it is one of the most secure investment options. That is, the Indian government insures your investments in the fund. The government sets the interest rate every quarter. PPF outperforms many other investment options primarily because your investment is tax-free under section 80C of the Income Tax Act (ITA), and PPF earnings are likewise tax-free.In a financial year, you can invest as little as Rs. 500 and as much as Rs. 1,50,000.If you want, you can extend it in 5-year increments.