Investment: If you are going to invest in this scheme of Post Office, then do not ignore these things even by mistake...

Post Office Scheme: Like banks, many types of small saving schemes are run in post offices. PPF is also one such popular scheme. One has to invest in this scheme for 15 years. Its advantage is that you can add a big fund by investing for a long time. Besides, tax benefits are also available in PPF. At present, interest is being given in this scheme at the rate of 7.1 percent. If you also want to invest in this scheme, then first know some of its drawbacks.

Interest rate has not changed for a long time

From April 2019 to June 2019, the interest rate of PPF was 8 percent, after which it was reduced to 7.9%. It was increased to 7.1% in January-March, 2020 and since then till date, it has remained at 7.1%. It has not been changed for a long time. If this interest rate reduces further in the coming time, then people will have many options available that can give better returns.

Long term investment

One disadvantage of PPF is that this investment is for a very long time. In this, you have to invest continuously for 15 years, after which your money matures. In such a situation, your money gets stuck for a long period. If long-term investments are to be made then mutual funds and NPS are considered a better option than PPF. Despite being market-linked, they give better returns in the long term. You can also arrange a pension through NPS.

No option for a joint account

In PPF, you do not get the option of a joint account nor can a person open more than one PPF account. However, you can create multiple nominees and decide their different parts. If the account holder dies due to any reason then the nominee has the right to withdraw that amount.

Maximum investment limit

The maximum limit of investment in PPF is Rs 1.5 lakh annually. If your salary is quite good and you want to invest more in this scheme, then you cannot. In such a situation you have to look for other investment options.

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