7 reasons to buy PPF after Union Budget 2014

The Budget has provided a big boost to Small Savings Scheme offered by the Post office, including the popular Public Provident Fund (PPF). Here are 7 reasons to buy the PPF after the Union Budget. #13; The Union Budget has now raised the limit in which you can invest in PPF to Rs 1.5 lakh from the earlier Rs 1 lakh. This has been the demand of several investors for some time now. The minimum investment in PPF continues to remain Rs 500 every year.Advertisement PPF is the only fixed yielding interest instrument, whose interest is tax free apart from Tax Free Bonds. This makes the instrument a great investment opportunity. PPF is the only instrument in the country that offers tax benefits under SEC 80C along with interest income being tax free in the hands of the investor. There is no other instrument that offers both the benefits. The interest rate at 8.7 per cent is slightly lower than the interest rates offered on banks, but, one must not forget that interest from bank deposits is taxable. Also, the interest on PPF is revised every year. The full amount in PPF can be withdrawn only after the completion of 10 years. This makes PPF an excellent investment as one is compelled to invest, with partial withdrawal only after the completion of 7 years. The ability to invest in amounts as small as Rs 500 through the year makes this an excellent scheme for small savers. If you have become a NRI after opening your PPF account, you can continue your account. However, NRIs cannot open a new account.