Considered to be one of the safest option among the different types of investment in India, Public Provident Fund (PPF) is an instrument backed by the government. You can invest in PPF by opening an account with any bank or post office. While opening the account, the minimum investment amount is as low as Rs.100 in some of the banks (can vary for every bank). Thereafter, the annual limits for PPF deposits range from a minimum of Rs.500 to a maximum of Rs.1.5 lakh. These investment types come with a lock-in period of 15 years and are eligible for
tax deductions under section 80C of the Income Tax Act, 1961.
**Investment Tips for PPF**
- PPF interest is calculated on the basis of the minimum balance in one’s PPF account between the 5th of the month and the month end. Thus, you should make it a practice to invest before the 5th of every month
- Investing in a PPF through a bank that provides the facility of online transfers is a must. This spells convenience and efficiency for investors and helps facilitate regular contributions.