If you’re looking for a secure investment option that offers tax benefits and guaranteed returns, the Public Provident Fund (PPF) remains one of the best long-term saving schemes in India. Backed by the Government of India, PPF provides a combination of risk-free returns, tax savings, and financial stability, making it a top choice for conservative investors.
What is the Public Provident Fund (PPF)?
Launched to promote savings habits among Indian citizens, the PPF scheme is a 15-year investment plan that allows individuals to deposit anywhere between ₹500 to ₹1.5 lakh per year. It is ideal for those who wish to build a secure financial corpus without exposure to market fluctuations.
Investments made in a PPF account qualify for tax deduction under Section 80C of the Income Tax Act, up to a maximum limit of ₹1.5 lakh per annum. Moreover, the interest earned and maturity amount are also tax-free, offering a complete EEE (Exempt-Exempt-Exempt) benefit.
Why Choose PPF for Investment?
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Safe & Government-backed: Since PPF is a government-sponsored scheme, your money remains safe from market volatility.
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Guaranteed Returns: Currently, PPF offers an annual interest rate of 7.1%, reviewed quarterly by the Ministry of Finance.
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Long-Term Wealth Building: The 15-year lock-in ensures disciplined saving, and the account can be extended in blocks of 5 years after maturity.
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Diversification Tool: Ideal for diversifying your investment portfolio by balancing riskier assets with a stable instrument.
How to Open a PPF Account Easily via YONO SBI
Opening a PPF account has become easier than ever. Now, you can do it online through the YONO SBI app without visiting the branch. Here’s what you’ll need:
Required Documents
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Duly filled PPF account opening form
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KYC documents (Aadhaar, Voter ID, Driving License, etc.)
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Address proof
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Passport-size photograph
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Nominee declaration (can be added during or after opening the account)
Key Points to Note
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Only one PPF account per individual is allowed.
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Joint PPF accounts are not permitted, even between spouses.
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You can extend the tenure multiple times in 5-year blocks after the initial 15-year period.
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PPF accounts can also be opened at post offices and authorized banks, apart from online platforms.
Final Thoughts
Whether you’re a salaried professional, self-employed, or a homemaker, the PPF scheme offers unmatched benefits for securing your financial future. With tax-free returns, fixed interest, and no risk, it serves as a strong foundation for any long-term investment plan. And with platforms like YONO SBI, starting your journey has never been easier.
Author Profile
- My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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