Benefits of PPF Account

Investment in a PPF Account is very beneficial for the PPF Account Holders. Benefits of PPF Account are listed below:

  1. Guaranteed Returns: Maximum Investment Amount of Rs 150,000 per year
  2. Available for long Tenure: Public Provident Fund (PPF) is a long term investment option for 15 years
  3. Interest Rate is fixed: Presently 8.00% p.a. effective from 1 October 2018
  4. Compounding of Interest: Interest Rate is compounding annually
  5. Tax Free Returns: Interest earned is not taxable
  6. Income Tax Rebate: Income Tax Rebate u/s 80C is available, up to Rs 1,50,000/- p.a.
  7. Tax Free Maturity: Tax Free maturity is available
  8. Premature Withdrawal is allowed: Only partial amount, after the 5th year and subject to a limited extent only
  9. Loans Availability: Loan from third year onwards is available
  10. No TDS: No Tax Deduction at Source (TDS) made under PPF Account
  11. Safety: It is the Safest Investment
  12. Renewal/ Extension of PPF Account: A PPF Account can be renewed/ extended within 1 year of maturity for further 5 years and so on in the block of 5 years indefinitely
  13. Transfer Facility: PPF Account can be transferred to any bank or post office
  14. No Attachment: PPF funds can never be attached under court order or cannot be claimed by creditors
  15. Nomination Facility: It is provided by a PPF Account