What is PPF Account
The Public Provident Fund Act, 1968, governs the Public Provident Fund Scheme. As backed by the government of India, the major objective of the PPF scheme is to encourage the habit of savings among a salaried individual along with the benefit of tax saving. Any individual residing in India can open a PPF account. One can open a PPF account with a minimum contribution of Rs.500.
When it comes to best-fixed income investment, PPF is an ideal option. It is 100% government authorized investment scheme. Your wife can open PPF account if she ready to wait for 15 years, which is the maturity period. There are many investment options out there in the market, which offer maximum returns at the effective interest rate and totally safe. As housewives save many every month, which makes PPF the best investment option for them. The reason why public provident fund continues to be favorite of housewives because, it is long term investment, second it is one of the safest investment options, the third value of investing money can be modified.
Why housewives should have an PPF account
- Convenient to Pay The minimum amount of housewives can open PPF account is minimum Rs. 500/- respectively. And the investment amount can go up to 1.5 lakhs. Housewives who struggle with cash flow and want to invest in some valuable investment then PPF is the best investment gateway.
Also Read: Things to know before investing in ELSS
- Safe and Reliable Many housewives unwilling to spend in the investment options because they think their money will be at risk. But, PPF is one of the safest and reliable investment options. As the fund in the PPF account is levied by the central government, there will be no default in the investment.
- Better Returns Many years ago PPF account gives a fixed return at the time of maturity period, but now it has become flexible. As per the government guidelines, the rate of the assured return would be 8%. Which can be a great competition for other government investment options including the post office?
- Some Other Advantages Being levied by the government. It is one of the most popular and safest investment schemes. So, there will be no fear of losing money. The only scared side of the PPF is the lock-in period. If your housewife has a patience level to investment for 15 years, then go for this option.
Important Investment PPF Account Tip
Those housewives need a high return and willing to spend for 15 years then understand this tip before spending. To enjoy the better return always invest in PPF on or before the 5th month. If making a one-time deposits before the 5th April so that you can gain the interest of full year. This investment option will definitely help you with household expenses.