Question

An informal letter about telling your friend about the advantages of ppf account and suggesting him to open a ppf account.

Answer 1

HEY!!!                                                                                            Bombay,                                                                                            26 March 2018
Dear Arjun,
Hope your parents and you are doing well. I am doing fine here. I am writing this letter to tell you about the PPF account I opened last month with my first salary. This has many benefits and I will mention a few of them.


You can start a PPF with just a small amount of Rs.100/-. Also, you need to make a deposit into your account only once a year. However, you can make the deposit more frequently if you wish. Another great advantage is that it offers tax benefits.


PPF also offers a comparatively bigger rate of interest than what is offered by savings accounts in banks. There is a lock-in period of 15 years during which you cannot withdraw the money. The best part is that because of this, you can be assured of really good savings. Since this is a government-backed scheme, the investment is completely risk free.


I hope you will understand the advantage of having a PPF account. I request you to also open an account at the earliest.

Yours Faithfully,
Shivam

hope it helps