PPF Investment Benefits: PPF, or Public Provident Fund, is a popular government investment scheme run by the Central Government as a safe, long-term savings option for Indian citizens. This scheme is particularly beneficial for those who want guaranteed returns with low risk. A PPF account can be easily opened at any bank or post office in the country. The minimum annual deposit in this account is ₹500, and the maximum is ₹1.50 lakh. Investors can deposit a lump sum or make multiple instalments throughout the year. This feature makes it a highly flexible investment option.
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The government currently offers an annual interest rate of 7.1 per cent on PPF, which is revised quarterly. This interest rate is completely secure as the investment is protected by the government. A PPF account matures after 15 years, but investors can extend it in blocks of 5 years. This allows the account to remain in operation for a maximum of 50 years. A minimum annual deposit of ₹500 is mandatory to maintain the account. If this minimum deposit is not met in any year, the account is closed, requiring a subsequent reactivation process.
The uniqueness of PPF extends beyond its secure interest rate. Investors can avail of loans up to 25 per cent of their deposits from the third financial year of account opening to the sixth. Furthermore, partial withdrawals are also available after five years, allowing 50 per cent of the account’s total balance to be withdrawn. This benefit makes PPF a flexible and useful investment instrument.
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If an investor deposits ₹1 lakh annually and wants to grow their wealth over the long term, PPF proves to be a beneficial option. According to estimates, investing ₹1 lakh annually for 25 years yields a guaranteed return of approximately ₹68,72,010. This includes a total investment of ₹25 lakh and interest of approximately ₹43,72,010. Due to its risk-free and stable returns, PPF is popular with everyone, from ordinary investors to employed individuals. For more information on investing and the necessary documents, contact your nearest bank branch or post office.
