Do you know these 5 things about PPF scheme? Read before investing

Currently, PPF, ie Public Provident Fund, is giving an interest rate of 7.1 percent. This scheme falls in the EEE category. This means that investment, interest and maturity are saved in all three areas. However, there are some things in PPF that common investors ignore. If you are also investing in PPF or going to do, then this news is important for you. Let’s learn 5 important things about PPF …

Do you know these 5 things about PPF?

1. Multiple accounts cannot be opened

You can open only one account in PPF. If you accidentally open two accounts, the second account will not be considered valid. You will not get interest on them until the two accounts are merged.

2. Interest rates vary.

The interest rate of PPF varies from time to time. In April-June 2019, the interest rate was 8 percent, then 7.9 percent and 7.1 percent in January-March 2020. Currently the interest rate is stable at 7.1 percent, but it may be more or less in the future.

3. Maximum investment amount

The annual investment limit is only Rs 1.5 lakh. If you have more income and you want to invest in it, then you will also have to look at other investment plans.

4. No alternative to joint account

You cannot open a joint account in PPF. However, you can appoint many enrolled persons and separate their paths. The nominee has the right to withdraw the amount after the death of the account holder.

5. Long lock-in period

PPF Plan The lock-in period of investment in is 15 years. In the meantime, partial withdrawal of the amount can be done after five years under some circumstances. However, the entire amount cannot be withdrawn immediately.