Question: Is it worth investing in PPF?

Is PPF better than FD?

The tax-saving FDs have a lock-in of 5 years, which is much lesser than PPF. But FDs go carry some risk and also the interest you earn is taxable. So, if you are ok with a 15 year lock-in then PPF can be a good option keeping all things in mind.

Which is better investment than PPF?

ELSS is the only kind of mutual funds covered under Section 80C of the Income Tax Act, 1961. ELSS funds have the shortest lock-in period among all Section 80C options. Nevertheless, it offers better scope for long-term wealth creation, people with more risk tolerance favour it.

How much will I get if I invest 1000 in PPF?

A PPF account matures in 15 years, after which you can either withdraw all your money or extend the PPF account for a block of 5 years each. 1. If one invests Rs 1,000 every month for 15 years, then they will deposit Rs 1.80 lakh by the end of 15 years. On the said amount, they will get Rs 3.25 lakh.

Can I invest 1.5 lakh in PPF every year?

The minimum investment in a Public Provident Fund (PPF) account per year is Rs 500 and maximum is Rs 1.5 lakh.

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Is PPF better than LIC?

Comparing the two investments would result in drastic differences. While LIC policies serve the purpose of insurance, a PPF serves the purpose of savings.


Points LIC PPF
Scheme Insurance Investment
Purpose Risk Protection Savings
Risk Safe Safest
Target audience Caters to those who have dependents Caters to everyone

Can I open 2 PPF accounts?

As per the Public Provident Fund (PPF) Scheme rules, an individual cannot have more than one account. However, many people still inadvertently end up opening more than one PPF account; they would have opened PPF accounts with two different banks or with a post office and a bank as well.

Is PPF 15 years?

PPF has a minimum tenure of 15 years which can be extended indefinitely in blocks of 5 years. Furthermore, the minimum investment in PPF account is Rs. 500 and maximum is Rs. 1,50,000.

Which bank PPF is best?

State Bank of India (SBI), which is the largest bank in the country, offers the PPF scheme with a good interest rate. SBI has over 15,000 branches in India, therefore, getting access to the scheme is easy. Opening of the PPF account offered by SBI can also be done online.

Is PPF worth it in India?

Experts say even though the yearly investment amount is limited to only Rs 1.5 lakh, PPF is among the safe fixed-income products. For conservative investors, it is an ideal option due to the fixed rate of return and predictability in the gains in PPF.

Can PPF be paid monthly?

You can make the deposits in your PPF account both in lump-sum or in instalments as per your convenience. The amount can be deposited in any number of instalments in a financial year in multiples of Rs. 50, up to a maximum of Rs. 1.50 lakh.

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Is PPF safe?

PPF is a risk-free investment and is guaranteed by the Indian Government. Is PPF a good investment depends on your goals. It is a government-backed safe savings avenue. The money deposited in a PPF account is utilised by the Government for its budgetary purposes and interest is deposited by the Government as well.

What is PPF interest rate?

Due to its combination of safety, returns, and tax benefits, the Public Provident Fund (or PPF) scheme is one of the most popular long-term saving-cumulative-investment options. For the quarter ending June 30, 2022, the PPF interest rate is 7.1 percent per annum. Getty Images.

Is PPF interest rate fixed?

Public Provident Funds (PPFs) are secured saving options you can open at banks or Post Office, with fixed interest offered by the government. Interest rates of PPF accounts are changed quarterly by the government.

Is PPF interest compounded?

The PPF interest rate is a maximum of 8% per annum. The advantages begin with the fact that the amount is completely tax-free and that the money is compounded annually.