Why you must have a PPF account?

1. Highest Return- 8% among the safest category of investment.

2. Only instrument that falls under EEE (Exempt - Investment amount, Exempt- Interest accrual ,Exempt- Interest pay out) category under Income Tax Act..You need not pay a single penny of tax.

3. Power of compounding can act effectively as the investment period is for 15 years.

4. Tax exemption under section 80 C.

5. The Lock-in period keeps reducing as years go by (15,14,13....and so on). Example if you opened a PPF account in 1992..the amount you invest in 2005 can be got back in 2006....
So Open PPF account even if you are wary of the 15 year lock in ….Keep investing the minimum amount every year (Rs 500) and you can use it during the final 3/4 years with a minimum lock in period!!

Happy Investing :-)

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