PPF Calculator: If you’re planning to invest, the government’s PPF scheme can be useful. PPF is one of the most reliable long-term investment plans. Many people can invest in this scheme for their retirement planning and their children’s future. The special feature of this scheme is that you can start investing with just ₹500.
Currently, the PPF scheme earns an interest rate of 7.1%. Another good thing about this scheme is that it provides tax-free income upon maturity. Let’s learn how investing ₹12,500 monthly in the scheme can accumulate a tax-free corpus of over ₹40 lakh.
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Understand the PPF calculator
If you invest ₹1.5 lakh in a financial year, you earn 7.1% interest. Interest is also earned on this interest. The investment period for this scheme is 15 years. If you invest for 15 years, your total investment will be ₹22.50 lakh. After this, you will receive ₹40,68,209 at maturity.
Power of Compounding in PPF
PPF is a long-term savings scheme supported by the Government of India. This means that there is no risk in investing. Returns in SIPs are based on stock market fluctuations. In PPF, returns are provided with the power of compounding. The interest earned in this scheme remains stable for four years. The safety and EEE tax status make it even safer and tax-efficient. This scheme is an excellent option for investors.
How to Open a PPF Account
Any Indian citizen can open a PPF account in their own name or in the name of their children. You can open this account online or offline. Some important documents are required to open an account under this scheme. It requires KYC documents like Aadhaar, Voter ID card, Driving License, PAN card, Nominee declaration form, address proof and passport-size photograph, etc. You can open a PPF account by visiting any bank or post office.