People are in search of a secure source of investment. As well as, they want to gain a good profit from the investment. For that, many prefer to invest in the share market. But investigation in a stock can prove very risky. There are chances to loose money as well. Rather than the small saving scheme run by the Central Government of India are considered as secure to invest. Through the Post Office, government offers many schemes for Indian citizens. As those schemes are Government supported, those schemes are secure to invest with guaranteed good return.
Post Office PPF Scheme Calculator
Currently, PPF offers an interest rate of 7.1% per annum, compounded annually. Importantly, PPF interest is tax-free. The minimum amount that can be deposited in a PPF per financial year is ₹500. The maximum amount that can be deposited in a financial year is ₹1.5 lakh. Investors can make this deposit either as a lump sum or in installments. Investments made in the Public Provident Fund are tax-free.
Who can open Post Office PPF account?
Adult Indian citizens can open an account under this scheme. A guardian can open an account in the name of a mentally challenged individual. Only one PPF account can be opened per person. A Public Provident Fund account matures in 15 years. After this, the maturity period can be extended by 5 years each year by applying at the post office. If you want to create a fund of Rs 90 lakh in 25 years through PPF, you will have to invest Rs 11,000 every month in this scheme.
How much profit on maturity?
This investment will amount to Rs 1,32,000 in a year. After 15 years, you will have to apply to the post office to extend the maturity period. This investment will yield Rs 90,71,053 in 25 years. This will include an investment amount of Rs 33 lakh. The interest income will be Rs 57,71,053.