Public Provident Fund (PPF)
PPF is a better option for investment. The specialty of PPF is that the returns for this remain fixed. Since it has got government protection, it is safe to invest here. PPF account can be opened and invested through a bank or post office.
PPF works on EEE or ‘Exempt-Exempt-Exempt’ where returns are tax-free, the maturity amount is tax-free and investments qualify for deduction under Section 80C of the Income Tax Act.
PPF investors can avail of the loan after the third financial year. This facility is available until the 5th financial year and loans can be availed once a year. After completion of 15 years of PPP account, it can be extended for another 5 years.
An investor who wants safe investment and fixed returns can invest in PPF. The only problem with this scheme is that the PPF return rate has come down in the last few years.