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PPF Interest Rate; Tax Advantage of PPF; PPF Rule


If one happen to ask me about the best investment option for an individual, my reply would be Public Provident Fund (PPF). A risk-free return of PPF Interest rate is 8.70% p.a. (as notified presently by the Government) and that too tax-free. What more do you want!

PPF scheme is a long-term investment scheme backed by the Government of India. It offers safety with attractive interest rate and returns that are fully exempt from tax. The interest on the PPF account is notified by the Government at the beginning of every year and the current rate of interest is 8.70%.

An individual can invest as low as Rs. 500/- upto Rs. 1,50,000/- per annum. Contribution made to PPF account is eligible for rebate u/Sec. 88 of the Income Tax Act. The tenure of PPF account is fixed at 15 years, and can be extended any number of times in a block of 5 years.

An annual investment of Rs.1,00,000/- per annum for 15 years in PPF account will grow to Rs. 31,17,276/- if the current interest rate of 8.70% is maintained.

To know more about PPF, Click Here

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2 Responses to Why Invest in PPF ?

  1. A.Mohan says:
    January 31, 2016 at 6:16 am

    As You know that SIP is giving More Than PPF whats the reason behind encouraging it ?

    • Amit Mahansaria says:
      January 31, 2016 at 11:09 am

      SIP has always been a good investment. But one must diversify a part of his/her portfolio in debt as well and PPF is the best debt investment as of today.

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