Parents often seek safe investment options for their children’s education, future, or wedding expenses. Numerous schemes are available in the market, but choosing the right one isn’t always easy. In such a situation, the Public Provident Fund (PPF) is a scheme that is not only completely safe but also offers excellent long-term returns. This is why millions of families prefer it.

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Why is PPF considered the safest investment?

The Public Provident Fund is a government savings scheme where deposits are fully guaranteed by the government. This eliminates the risk of loss or loss. It is ideal for those who want assured and stable returns without any market risk.

PPF Offers Tax-Free Returns

PPF is not only safe, but both the interest and maturity amount are tax-free. There are very few such safe and tax-free schemes in the investment world. This is why it is considered a highly reliable option for children’s education, marriage, or retirement planning.

Interest Rate and Investment Convenience

PPF currently offers a compound interest rate of 7.1 per cent annually, which is higher than many banks’ fixed deposit schemes. Its unique feature is that investors can deposit a lump sum or in instalments, depending on their convenience. A minimum deposit of ₹500 and a maximum of ₹1.5 lakh can be made each year.

A Strong Long-Term Option

PPF has a tenure of 15 years. After this, investors can extend the account if they wish. Even if they don’t deposit new funds, interest will continue to accrue on the old amount. Over time, this amount can become quite substantial and can become a source of stable income after retirement.

How Much Fund Will Be Created in 15 Years

If a person deposits ₹5,000 every month, the total investment will be ₹9 lakh in 15 years. The amount, including interest, grows to approximately ₹16.27 lakh. The interest earned on this amount can generate an additional income of approximately ₹9,628 per month.

Similarly, if ₹12,500 is invested every month for 15 years, approximately ₹40.68 lakh can accumulate in the account. Even after retirement, this amount can generate interest of approximately ₹2.88 lakh per year, or an income of approximately ₹24,000 per month.

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Account Opening Process

To join this scheme, open a PPF account at the nearest post office or any nationalised bank. The process is simple, and a minimum annual investment of ₹500 is required. Parents can consider this as an excellent option to secure their children’s future.