PPF Advantages and Disadvantages
Friends, when we have to invest anything, we will first ask how safe my money will be and it is also natural to do this because in the advertisements day and night it only shows that the mutual fund is right, but only this line. They also affirm that the mutual fund market is subject to rules, that is, there is danger.
In such a situation, how will people know what are the safe investment plans in the market and what are the advantages or disadvantages of them?
So friends, today we try to give you maximum information about the benefits of the PPF account advantages and disadvantages.
Friends of the PPF account have more benefits and no loss because if I say profit, then there is no risk of us investing in it, but we get the good interest and trust that our money will never sink.
Tenure -Friends, the biggest benefit of PPF is that its tenure is 15 years and you can extend it for 5 more years. So that our money keeps investing for a long time.
Loan facility -The specialty of PPF is that under it you can also take a loan on top of your account within a period of 3 or 5 years. You get this loan up to 25% over the second year immediately after your loan application.
Compounding interest - At the end of every financial year, you get interested in your deposit and this interest is added every year till your policy matures or you withdraw it.
No-Risk — PPF scheme is also fully supported and controlled by the government, so you get risk free returns on your investment.
Money depositing facility - You can deposit money in your PPF account in the form of cash, check, demand draft and if you have opened your account in a bank then you can deposit money online also.
Tax benefits to investing in PPF -PPF Friends is a tax-free plan that comes under section 80C and you are allowed to invest up to 1.5 lakhs in it and on which you do not need to pay any tax nor do you get any kind of interest on it. So, this investment boosts your money with no tax benefit.
Account opening facility -You have the choice to open the account in Bank or Post Office. It depends on you that where you will feel easy to make payment of your policy.
Disadvantages of PPF account.
Friends, although there are no disadvantages to the PPF account, yet as a user, we would like to get all the benefits from the PPF account and get it easily. If we look at this subject carefully, we will find that PPF account can be more popular if it also improves the following topics:
1 — Can NRI invest in PPF?
Friends, if you are an NRI, you are no longer allowed to open a new PPF account, although you already have a PPF account, you can continue that.
Here, friends, we would like to tell you that you cannot extend the period of your account anymore, after the completion of the period of 15 years of your account.
2 — How NRI can withdraw?
Friends, if you are an NRI and want to close your PPF account, then you have to fill the withdrawal forum first and submit it to the bank or post office.
If you are submitting this forum yourself, then it is right or else you can send that forum by someone’s hand (relative or any special information) but you will also have to give a withdrawal permission letter with the forum.
When the bank or post office accepts the documents submitted by you, then your PPF account will be closed, your full payment will also be done with support.
Originally published at https://www.techgyanworld.com on February 29, 2020.
