PPF or Public Provident Fund is a government scheme. If you want to invest money for a long time and do not want to take any kind of risk in terms of investment, then this scheme can prove to be very good for you. In this scheme, from Rs 500 to a maximum of Rs 1.5 lakh can be deposited. Investment has been made in PPF for 15 years. At present, it is getting interest at the rate of 7.1 percent. PPF is also considered a very good scheme in terms of saving income tax. Being in the EEE category, this scheme saves tax in all three - investment, interest/return, and maturity. Apart from all these benefits, PPF also has some drawbacks, which people usually do not talk about. Know about it here.

Cannot open more than one account

Like many schemes, you do not get the facility to open more than one account in PPF. If by mistake 2 PPF accounts have been opened for you, then the second account will not be considered a valid account. Till the time both the accounts are merged, interest will not be available on it.

Interest rates have not changed for a long time.

Talking about the interest rate of PPF, its interest rate also keeps getting affected with time. From April 2019 to June 2019, its interest rate was 8 percent, after which it was reduced to 7.9 percent, and then in January 2020 it was reduced to 7.1 percent. Since then, this interest rate has remained at 7.1 percent. If this interest rate decreases further in the coming time, then people will have many options giving better returns than this.

Maximum limit of investment

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

No option of the joint account

In many other schemes, you get the facility to open a joint account, but this facility is not available in PPF. However, you can make many nominees in it and can also decide on their different shares. If the account holder dies due to any reason, then the nominee has the right to withdraw that amount.

Long lock-in period

The lock-in period of investment in PPF is 15 years, which is quite long. If you need funds in between, then after 5 years, in some special circumstances, you can make a partial withdrawal. But you do not get permission to withdraw the entire amount.

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