Nowadays, there are multiple options for personal investment. But there are few schemes which are serving people for years after years. As we know old is gold. For example, PPF, this old scheme is still very popular.

Rules for investing in PPF

Public Provident Fund i.e. PPF is an old and very popular savings scheme. This scheme is being run by the Central Government. Currently, an annual interest of 7.1 percent is being given on the PPF scheme. Under the PPF scheme, you have to deposit money at least once in a year. If you wish, you can deposit money in lump sum every year in the PPF account or you can also deposit money in a maximum of 12 installments. A minimum of Rs 500 and a maximum of Rs 1.50 lakh can be deposited in a PPF account in a year. If you are depositing money in installments, then you can make an installment of just Rs 50.

Rs 16,27,284 after 15 years, calculation

PPF account matures in 15 years. However, you can extend it for 5 years at a time by filling out a form. A PPF account can be opened at any bank. You can also open one at your nearest post office. If you deposit ₹5,000 into your PPF account every month, your annual investment will reach ₹60,000. If you invest ₹60,000 annually in the PPF scheme, you will receive a total of ₹16,27,284 after 15 years, i.e., upon maturity. This includes ₹900,000 of your investment and ₹727,284 of interest.

You need to be especially careful about your PPF account. If you don’t deposit even a minimum of Rs 500 in a year, your account will be closed. However, it can be reactivated by paying a fine. You also get the facility of loan with your PPF account. As we told you, PPF is a government scheme. Therefore, every penny you deposit in this account is completely safe. After opening a PPF account, you cannot withdraw money before 5 years. After 5 years, money can be withdrawn from the PPF account only in some special circumstances like serious illness or for children’s education.

 

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