1. You Can Extend Your PPF Account Beyond 15 Years
While most people believe that PPF has a maximum tenure of 15 years, that’s only the initial lock-in period. After 15 years, you can extend your account indefinitely in blocks of 5 years, with or without further contributions, making it a great option for long-term savings.
2. PPF Loans Are Available at Attractive Interest Rates
You can avail of a loan against your PPF balance between the 3rd and 6th year of your account, at an interest rate of just 1% above the current PPF interest rate. This makes PPF a great emergency fund option with the added benefit of easy loans.
3. You Can Make Partial Withdrawals After 6 Years
PPF accounts allow partial withdrawals from the 7th financial year onwards. This feature can be useful if you need funds for emergencies or major life events, giving PPF an edge over many other fixed-income options.
4. Your Contributions Can Be Spread Throughout the Year
Many people think that PPF contributions need to be made in a lump sum at the beginning of the year, but you can actually contribute monthly, quarterly, or in a lump sum anytime during the year. This flexibility helps you manage your cash flow while maximizing returns.
5. Interest Is Calculated on a Monthly Basis, Not Annually
The interest on your PPF balance is calculated monthly but is credited at the end of the year. To maximize interest, ensure that you make your deposit before the 5th of each month, as the balance on or after the 5th is considered for interest calculation.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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