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PPF Scheme: Investors can start investing in PPF with just Rs 500, while a maximum of Rs 1.5 lakh can be invested in a year. The maturity period in this scheme is 15 years and even after maturity the investment can be extended for another 5 years.
Everyone makes small savings from their hard-earned money with the hope that they will not have to face any kind of financial problem after retirement. However, to achieve this goal you need to invest your savings in the right place. If you also want to collect big funds then you can invest in PPF scheme.
Safe investments and tax benefits
Investing in PPF scheme is a profitable deal in the long term. In fact, the government guarantees huge interest as well as security on your deposits. The returns received on investing in this are absolutely tax free. The benefit of compound interest is also available in this scheme. Along with this, you can avail tax exemption on investment in PPF under Section 80C of Income Tax.
You can invest this much every year
Investors can start investing in PPF with just Rs 500, while a maximum of Rs 1.5 lakh can be invested in a year. The maturity period in this scheme is 15 years, that is, you can invest for this period, but if you want to continue investing even after maturity, then in such a situation the PPF account can be extended for 5 years. . Facility is also available. However, for this, application will have to be made one year before the completion of maturity.
So much profit on a monthly investment of Rs 5000!
Now if an investor saves only Rs 5000 every month then how can he deposit a fund of Rs 42 lakh. Before calculating this, know that the interest rate on investment in this scheme is 7.1 percent.
By depositing Rs 5000 per month, Rs 60,000 will be deposited in the PPF account in a year and in 15 years the total deposit amount will become Rs 9,00,000. At the same time, according to the fixed interest rate on the amount deposited by you, the interest will be Rs 7,27,284, that is, till then your deposited fund will be Rs 16,27,284.
Now if you extend this fund for 5-5 years, your total deposited fund will also increase accordingly. That is, if you extend it for 10 years, i.e. after 25 years, the total fund including interest on the amount deposited by you will be around Rs 42 lakh. In this period of 25 years, your interest income will be more than Rs 26,00,000.
Loan facility is also available in this scheme.
In PPF scheme, you get the facility to invest in lump sum or installments. Talking about its other benefits, emergency fund withdrawal can also be done with this scheme with one year maturity, although investors cannot withdraw more than 50 percent of the amount. According to the condition laid down for this, the investment period should be completed for 6 years. At the same time, you can take a loan under this only after investing for 3 years.
you can open
PPF account in post office or bank. You can open PPF account in almost all government and private banks of the country including post office. For this it is necessary to be an Indian citizen. You can open a PPF account in the name of minor children, but for this it is mandatory to have a guardian. The earnings from the child’s account are added to the parent’s income.
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