Let’s know Why Opening PPF Account In Post Office is a Good Investment – Preparing for the future has become crucial in today’s time and age. We never know when we might come across an unforeseen event leading to a financial emergency. Having a financial backup ready ensures that we and our loved ones are secure and can lead a life without any financial hassles.
Moreover, the rising cost of living and inflation rates have made it difficult for us to manage our current expenses and save an ideal amount for the future for ourselves and our family.
Today, investing in a Public Provident Fund or PPF has become one of the most preferred ways to save a lump sum amount and provide financial security. If you are looking for a comprehensive guide on why opening a PPF account in post office is one of the best choices, then you have stumbled upon the right article. Here, we will talk about what is PPO and the features and benefits of investing in this investment plan.
What is a Public Provident Fund (PPF) Investment Plan?
Investing in a Public Provident Fund scheme or a PPF scheme is a reliable investment plan as this scheme is one of the safest investment plans and is also backed by the Government of India. The PPF account in post office comes with a lock-in period of 15 years. However, in case the policyholder comes across a financial constraint, then he or she can make partial withdrawals after the 6th year of the policy
Benefits of Opening a PPF Account in Post Office
A few benefits of opening a PPF account in post office are given below –
1. Financial Security of You and Your Loved Ones
One of the key benefits of opening a PPF account in post office is that it provides long-term financial security to you and your family. With this, you and your family do not have to worry about the financial aspect in the coming years. Moreover, this plan also provides a lump-sum amount of death benefits in case of unforeseen demise of the policyholder so that they can carry on with their lives even if you are not there to provide them with a financial backup.
2. Protects You Against the Rising Cost of Inflation Rates
In the past couple of years, the cost of living and inflation rates have seen a tremendous rise in various areas, such as education and medical cost. Opening a PPF account in post office will ensure that you and your loved ones do not fall into the clutches of the rising cost of inflation rates and are financially protected.
3. Tax Deduction Benefits
Another key reason why you should open a PPF account in post office is tax deduction benefits. With this plan, you can claim upto Rs. 1.5 lakhs of tax deduction benefits in one financial year under Section 80C of the Income Tax Act, 1961.
4. Secures Your Retirement
Our retirement is a phase where we want to spend quality time with our near and dear ones peacefully without facing any financial hassles. Opening a PPF account in post office provides you with financial security during your golden years. Moreover, this investment plan will provide you with regular monthly pensions giving you peace of mind and security so that you can achieve all your post-retirement goals without any hassle.
5. Facility of Loan
There can be times when you will come across an unforeseen event and might face a financial emergency as well. In such cases, you might plan on taking a loan to meet the required financial amount. Opening a PPF account in post office gives you the facility to take a loan against the investment plan. You can avail the loan in this plan between the 3rd and 6th year of the policy. Moreover, the maximum time you can take a loan is 36 months.
Let us now look at a few features of the PPF account in post office.
Features of a PPF Account in Post Office
The Minimum and Maximum Amount You Can Invest
Below mentioned are the minimum and maximum amount you can invest in a PPF investment plan in one financial year
- Minimum amount – Rs. 500
- Maximum amount – Rs. 1.5 lakhs
Tenure of PPF Account in Post Office
The minimum tenure of the PPF account in post office is 15 years. However, in case you wish to increase the tenure, you can extend it by a multiple of 5 years.
Nomination Under the PPF Account in Post Office
If you have invested in the PPC account in post office, you cannot hold a joint account. However, you can appoint a nominee who will receive the lump sum death benefits.
Make the Right Choice
You now know everything about the PPF account in post office, its benefits, and its features as well. So, if you are planning to invest in a PPF account, you should opt for leading insurance companies in India. Their experts come with expert knowledge and great experience and will guide you on your way forward.