If you are looking for investing in Small Savings Scheme (SSS), then PPF or Public Provident Fund (PPF) could be an option for you as the scheme offers risk free investment opportunity with attractive interest rates. The good news is that the government has kept the interest rate unchanged for this quarter. This means this small savings scheme will continue to earn interest at Rs 7.10 per cent per annum for the July-September quarter.

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The Scheme could be bought from any Post Office or bank branch.

A PPF account can be opened by any resident individual or individuals on behalf of a minor. The scheme does not allow individuals to open an account jointly with other person. Non-resident Indians (NRIs) are not eligible to open an account under this scheme. However if a resident becomes an NRI during the 15 years' tenure prescribed under PPF scheme, he is allowed to continue the fund until its maturity on a non-repatriation basis.

Features of PPF:

1) An individual can open only one PPF account and declare the same at the time of account opening.
2) An individual can invest a minimum of Rs 500 and a maximum of Rs 150,000 per annum.
3) The scheme is valid for 15 years and then on application by the subscriber, it can be extended for 1 or more blocks of 5 years each.
4) The rate of interest is determined by central government on quarterly basis. At present it is 7.10 per cent per annum.
5) Loans and withdrawals are permitted depending upon the age of the account and balances as on the specified dates.
6) There are income tax benefits available with the scheme.
7) The scheme offers nomination facility in the name of one or more persons. The shares of nominees may also be defined by the subscriber.

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8) The account can be transferred to other branches/other banks or Post Offices. This service is free of charges.