PUBLIC PROVIDENT FUND

The Public Provident Fund (PPF) Scheme is well-known for its Tax advantages under Section 80C of the Income Tax Act. A PPF Account is a popular long-term savings and investment option in India for any Indian citizen.

Here is why it is important:

1. Financial Security: It ensures a secure financial future, bringing a disciplined approach to long-term savings. Over time, those that consistently contribute can build a substantial corpus.

2. Wealth Accumulation: This scheme makes it easier for wealth to grow steadily. Compounding growth over the long term can significantly boost your total savings and provide a substantial return on investment.

3. Encourages Savings Habit: Regular contributions to a PPF Account motivate investors to put money aside, enhancing financial stability. PPF Accounts have a lock-in period of 15 years, which encourages a savings habit.

4. Tax Benefits: The returns earned on a PPF Account are non-taxable, making it one of the most sought-after investment choices for people looking to accumulate wealth without Tax implications.

1. Withdrawal is allowed after 6 years from the end of the year in which the Account was opened.

2. You can withdraw up to 50% of the balance at the end of the 4^th year preceding the year of withdrawal or the end of the preceding year, whichever comes before.

3. Only one partial withdrawal is allowed per year.

PPF has a lock-in period of 15 years, and you cannot fully withdraw your investment before this term ends. This long-term commitment encourages disciplined savings and helps build a substantial corpus over time.

However, partial withdrawals are allowed after 5 financial years, and you can take a Loan against your PPF balance after the 3^rd year. The lock-in period makes PPF an excellent tool for long-term financial goals like retirement planning or funding your child's education.