PPF Scheme: Various schemes are being run by the Central Government for the benefit of the people. Through these schemes, different benefits are provided by the government to different classes of people. At the same time, many types of schemes are being run by the government for the savings and investment of the people. Interest can also be earned by investing in these schemes. There is also a Public Provident Fund ie PPF among them. There are many advantages to investing in PPF but there are some disadvantages to this scheme as well. Let’s know about it…
Money will be stuck for a long time
If you are looking for short-term investment then PPF is not a good option for you. Through this scheme, the maturity amount is received after 15 years. In such a situation, money will be stuck in this scheme for a long time. This scheme is not beneficial for those who do not want a long-term investment.
Possibility of change in interest rate
Interest is also available on the amount deposited in the PPF account. However, the interest rate in this scheme is not fixed. The interest rate of this scheme is reviewed by the Central Government every three months and changes are also made to the interest rate if needed. Under this scheme, 8 percent interest was given from April 2019 to June 2019. However, currently, 7.1 percent interest is being given in this scheme. In such a situation, this scheme will not be beneficial for those who want higher returns on their investment.
The investment limit
PPF is also fixed in the scheme. Under this scheme, a maximum investment of Rs 1.5 lakh can be made in a financial year. On the other hand, if someone wants to invest more than this, then he will not be able to do so in this scheme. In such a situation, this scheme is not suitable for those who invest more than Rs 1.5 lakh in a year.
Read More: EPFO: Advance can be withdrawn from PF account even during job, money comes to bank account in 72 hours
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