PPF Scheme: Small savings and investments have special significance in the life of a common man. People want to cut down their expenses and save money in different ways and invest it somewhere so that they can prepare a good fund for the future. One of these is Public Provident Fund (PPF). You can create a good fund by making small investments in the PPF scheme.
In the PPF scheme (Public Provident Fund Scheme), the investor has to invest for a long time. In this, where the investor gets a good return on maturity, the investor’s money is also safe due to the government guarantee. Also, investors do not have to pay any tax on the returns received in this.
Public Provident Fund Scheme is a long term savings scheme. Its maturity period is 15 years. After this, you can also increase your deposit amount for a period of 5-5 years.
You can start investing in this scheme with just Rs 500. The maximum investment limit in this is Rs 1.5 lakh annually. Under this scheme, you can start investing by opening an account in your nearest post office or bank.
The government is currently paying interest at the rate of 7.1 per cent (from January 1, 2023) in this scheme. Which is calculated on the basis of compound interest. Also, there is no effect of the risk of investment market i.e. fluctuations in it.
Under this scheme, if you invest Rs 5000 monthly for 15 years i.e. Rs 60,000 annually, then according to the current interest rate, you will get more than Rs 16,00000 on maturity.
Along with this, if you extend your deposit for another 5-5 years, then after 25 years you can get more than Rs 41 lakh. On the other hand, if you deposit Rs 12500 every month i.e. Rs 1.5 lakh annually in this scheme, then after 25 years you can get up to Rs 1 crore.
