Investment Tips: If you are going to invest in this scheme of Post Office, then do not ignore these things even by mistake..
Post Office Scheme: Like banks, many types of small savings schemes are run in the post office. PPF is also one such popular scheme. In this scheme, investment has to be made for 15 years. Its advantage is that you can add a big fund by investing for a long time. Along with this, tax benefits are also available in PPF. At present, interest is being given at the rate of 7.1 percent in this scheme. If you also want to invest in this scheme, then first know some of its drawbacks.
Interest rate has not changed for a long time
From April 2019 to June 2019, the interest rate of PPF was 8 percent, after which it was reduced to 7.9%. In January-March, 2020, it was reduced to 7.1% and since then till today it is 7.1 only. It has not been changed for a long time. If this interest rate reduces further in the coming time, then people will have many options that give better returns than this.
Long term investment
One disadvantage of PPF is that this investment is for a very long time. In this, you have to invest continuously for 15 years, after that, your amount matures. In such a situation, your money gets stuck for a long period. If you want to make long-term investments, then mutual funds and NPS are considered better options than PPF. Despite being market-linked, these give better returns in the long term. You can also arrange for a pension through NPS.
No option for joint account
You do not get the option of a joint account in PPF and neither can a person open more than one PPF account. However, you can make many nominees in it and can also decide on their different shares. If the account holder dies due to any reason, then the nominee has the right to withdraw that amount.
Maximum limit of investment
The maximum limit of investment in PPF is Rs 1.5 lakh per annum. If your salary is very good and you want to invest more in this scheme, then you cannot do so. In such a situation, you have to look for other investment options.
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