You recently welcomed a baby girl to the family. Happy times for the family! This is also a good time to start investments for her education. The sooner you start, the less it will burden your pocket. Now the question. Where to invest for daughter’s education? There are many ways you can do this. You can invest in bank fixed deposits, recurring deposits, blue chip … [Read more...] about PPF vs SSY: Where to invest for daughter’s education?
Public Provident Fund
This is not a good news for NRI (non-residents) who have invested in PPF accounts. As per a recent Government notification, PPF accounts have to be closed when the account holder becomes an NRI (non-resident Indian). As I understand, the definition of NRI (person outside India) as per FEMA will be considered (and not as per Income Tax Act). So, if you are going abroad for … [Read more...] about NRIs have to close their PPF Accounts
Last week, the interest rate for PPF, Sukanya Samriddhi Scheme, Senior Citizen Savings Scheme, NSC and other small savings schemes were cut by 0.1% p.a. Let’s look at what the rates are. Latest Interest Rates for PPF and other Small Savings Schemes I am copying a snapshot from Ministry of Finance notification dated June 30, 2017. Here are the latest interest … [Read more...] about Interest rate for PPF and other Small Savings Schemes cut by 0.1%. What should you do?
I had a discussion with a friend a couple of weeks back about investment in PPF account. We discussed how investment in PPF account was capped at Rs 1.5 lacs per account. If you are married, you could invest Rs 3 lacs per annum (Rs 1.5 lacs in your account and Rs 1.5 lacs in your spouse’s account). You can’t breach the limit of Rs 3 lacs even if you have kids since the … [Read more...] about How You and Your spouse can invest more than Rs 1.5 lacs in PPF accounts?
PPF interest rate has been cut from 8% p.a. to 7.9% p.a. for the April-June quarter. This is the first time PPF interest rate has fallen below 8% p.a. By the way, PPF is NOT the only investment product for which the interest rates have been cut. Interest rates for other small savings schemes (Sukanya Samriddhi Scheme and Senior Citizens Savings Scheme) have also been cut by … [Read more...] about PPF rates cut again and the Equity brigade will rejoice
A few weeks back, a prominent person in MF industry published an article in Economic Times arguing that investors should completely PPF in favour of equity funds (ELSS to be specific). The primary argument was the PPF provides returns which may not beat inflation. Moreover, returns from equity funds have outperformed PPF over the long term. This came at a time when PPF rates … [Read more...] about Should you ditch PPF?
If you thought you could not close your PPF account before 15 years, you are not right anymore. Premature closure of PPF account is now a reality. In the notification dated June 18, 2016, the Government has permitted premature closure of PPF account subject to certain conditions. Existing (Earlier) Rule about PPF closure PPF account could only be closed after 15 years from … [Read more...] about Now, You can close your PPF account before 15 years
Bad news for investors!!! The Government of India has cut the interest rate on various small savings schemes. High interest rates for the small savings schemes including Public Provident Fund (PPF) had been cited by banks as the reason for not cutting interest rates in tandem with interest rate cuts from RBI. Their refrain was they cannot reduce interest rates on deposits as … [Read more...] about Government cuts PPF interest rate
During the tax-saving season, ELSS vs PPF is a very common topic of discussion. Conservative investors consider PPF better while proponents of equity investments can not see anything beyond ELSS. A number of my clients and friends inexplicably ask this question during the last quarter of financial year. I find this question quite amusing and in fact wrong at some level. Apart … [Read more...] about Should you invest in ELSS or PPF for tax-saving?
Public Provident Fund (PPF) has been a preferred investment destination for many investors for many years. It is one of my favourite tax-saving products too. Apart from the attractive tax-free interest rate, PPF investments also get a favorable tax treatment. PPF falls under Exempt-Exempt-Exempt (EEE) tax regime. I have covered several such aspects of PPF account in some of my … [Read more...] about All you need to know about PPF Account