Today’s report is for those who love saving and want to stay worry-free about the future. At a time when bank interest rates are slowly going down, government schemes are offering surprising benefits — even with tax exemptions. Yes, we are talking about the Public Provident Fund (PPF).
In fact, the 25-year strategy is one of the simplest methods of investment. If you invest ₹12,500 every month in this plan, your yearly investment will be ₹1.5 lakh. After 25 years, you can get around ₹1.03 crore, and out of this, nearly ₹65 lakh will be just interest. Imagine that!
What is the Interest Rate Now?
Right now, PPF gives 7.1% interest every year. This is compound interest. That means you get interest not only on the money you put in but also on the interest you earn. This is the main benefit of PPF. Your money grows faster because of this.
How Much Can You Invest and for How Long?
In this scheme, you can invest at least ₹500 in one year. The most you can invest in a year is ₹1.5 lakh. At first, the scheme runs for 15 years. But after that, you can increase it two times for 5 years more. So, you can keep the scheme for 25 years if you want. If you cannot save ₹12,500 every month, then that’s okay. You can still make ₹1 crore. If you save ₹4,585 every month in this scheme, then in 35 years, you will get ₹1 crore. This shows that even small savings can become a big amount over time with PPF.
You Also Get Tax Benefits
PPF also gives tax benefits. When you put money into the scheme, you get tax exemption up to ₹1.5 lakh under Section 80C. The interest you earn is also free from tax. And when your scheme ends, the full money you get is also tax-free. So, if you want to save for your future in a safe and smart way, PPF is a great option.