PPF – Public Provident Fund As Retirement Option In India
Bank of Baroda.
Oriental Bank of Commerce.
State Bank of India – SBI.
Punjab National Bank.
What are the benefits of PPF?
This gives you an opportunity to accumulate your corpus for retirement with hedge to inflation.It helps you in maintaining the purchasing power of your money in 15 to 25 years of your life.
This product is of long term in nature and you can invest up to 1.5 lac in a year.
This gives you return of 8.7% in the fy 2014 – 2015.
Is it suitable for individuals?
No plan is good or bad, only the situation of individual decides whether he or she should buy the product or not.
You should not buy any plan without planning your need at retirement. This plan protects your money from inflation and hardly adds any value to your purchasing power.
Investment without knowing your need you can have short corpus or you may have very high surplus corpus by unnecessarily sacrificing your other needs.
This is good for people who are not disciplined enough to invest regularly or who cannot avoid premature withdrawals.
The answer is comprehensive customized life planning, this makes you plan your life with approximately all the domains of life.
Buy paying Rs. 25000 a year in PPF, can you think of getting pension of Rs. 25000(in today’s value) per month at retirement?
The answer is ‘NO’
To carry out – all your responsibilities you need to plan your life