Saturday, March 1, 2014

Pros and Cons of Public Provident Fund (PPF) Account for Tax Saving

If you are an Indian, I am sure you must have heard about Public Provident Fund or PPF, one of the most popular long-term saving scheme backed by the government of India. If not about PPF, then definitely about EPF, Employee Provident Fund, it's big brother. Since EPF is sort of mandatory and your employer deduct some portion of your salary apart from his contribution, it's not something you worry about. By the way, if you want to check your EPF account balance, you can see it here. PPF investment is a similar product for any citizen of India through NRI can not open PPF account in India, it's only for residents of India. PPF allows you to save some money, reduce your taxable income and grow your investment with safety guarantee from the government on India. It also gives you a decent interest rate of 8.7% per annum, compounded annually.