Public provident fund (PPF), a government-backed scheme for small savings, has plenty of advantages, including convenience, satisfactory returns with high safety, and also tax rebates. As it is a long-term scheme it will provide you with returns even during the twilight of your life. The tax-free status of PPF is also a great boon. Even the interest income earned is tax-exempt. And of course, thanks to the government’s support, PPF is one of the safest schemes going. The only downside of PPF is its lack of liquidity, but even that can be tackled. More of that next week.
Making PPF More Liquid
PPF is one of the most attractive investment options available in India. If there’s a problem with it, it’s the liquidity factor. But even that can be improved. Here’s how: most investors deposit Rs 60,000 annually in the same account. Instead, why not open a new account every year? You can maintain it by putting in just Rs 100 in every following year, till maturity. So after the end of 15 years, the first account will mature. In the 16th year, the second will mature, and so on. But don’t forget to put that Rs 100 in each of the accounts you open to keep them active.
PPF is one of the most attractive investment options available in India. If there’s a problem with it, it’s the liquidity factor. But even that can be improved. Here’s how: most investors deposit Rs 60,000 annually in the same account. Instead, why not open a new account every year? You can maintain it by putting in just Rs 100 in every following year, till maturity. So after the end of 15 years, the first account will mature. In the 16th year, the second will mature, and so on. But don’t forget to put that Rs 100 in each of the accounts you open to keep them active.
Other Benefits of Investing in PPF
Do you know that investment in the Public Provident Fund cannot be attached by any Court for recovery of loans? Under the Public Provident Fund Rules, the credit balance of the depositor's account cannot be subject to attachment by any Court for the recovery of loans. So it is better to invest in Public Provident Funds, when you are self employed or not covered by the PF by your employer. Apart from savings with attractive returns, you will also get immunity from attachments for recovery of loans, in case of defaults by you. However, one should remember that it is highly ethical to repay all your debts from whatever sources available to you to keep up your honour.
Do you know that investment in the Public Provident Fund cannot be attached by any Court for recovery of loans? Under the Public Provident Fund Rules, the credit balance of the depositor's account cannot be subject to attachment by any Court for the recovery of loans. So it is better to invest in Public Provident Funds, when you are self employed or not covered by the PF by your employer. Apart from savings with attractive returns, you will also get immunity from attachments for recovery of loans, in case of defaults by you. However, one should remember that it is highly ethical to repay all your debts from whatever sources available to you to keep up your honour.
To help you stay safe and secure online, we've developed the all new Yahoo! Security Centre.
No comments:
Post a Comment