PPF Tips: There is no option of a joint account in PPF, there are many such things which people do not know...

Public Provident Fund is one of the favorite schemes of investors. Any Indian citizen can invest in this scheme and can add a good amount of funds through it in the long run. This scheme is also considered very good in terms of saving income tax. Being in the EEE category, this scheme can save tax in three ways. It saves tax in all three - investment, interest/return, and maturity. Currently, this scheme is getting interest at the rate of 7.1 percent.

These are all the benefits of PPF, but there are some things related to this scheme that people do not know about. If you are a PPF investor or want to invest in this scheme, then before investing you should also know those things related to it.

No option for a joint account

In all other schemes, you get the facility to open a joint account, but this facility is not available in PPF. However, you can make multiple 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.

No permission to open more than one account

Like all schemes, in PPF you do not get the facility to open more than one account. If by mistake 2 PPF accounts have been opened for you, then the second account will not be considered a valid account. Till the time both the accounts are merged, interest will not be available on it.

Interest rate has not changed for a long time.

Talking about the interest rate of PPF, its interest rate also keeps getting affected with time. From April 2019 to June 2019, its interest rate was 8 percent, after which it was reduced to 7.9 percent, and then in January, 2020 it was reduced to 7.1 percent. Since then, this interest rate has remained at 7.1 percent. If this interest rate decreases further in the coming time, then people will have many options giving better returns than this.

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.