Investment Tips: If you want to invest for the long term in a place where market fluctuations have no impact, then the Public Provident Fund (PPF) scheme can be an excellent option for you. This is a popular savings scheme run by the central government, offering complete trust and security for your investment. This is why millions of people across the country invest a part of their savings in PPF.
Why is the PPF scheme special?
The Public Provident Fund is commonly known as the PPF scheme. It is a long-term savings scheme in which investors receive returns at an interest rate determined by the government. Currently, this scheme offers an annual interest rate of 7.1 percent. This scheme is especially beneficial for those who want to build a large fund for the future through small, gradual savings.
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How much can you invest?
Investment in the PPF scheme can be started with just Rs 500. A maximum of Rs 1.5 lakh can be invested in a financial year. Investors can deposit money monthly, quarterly, or annually, according to their convenience.
Maturity period and extension option
The maturity period of a PPF account is 15 years. However, after 15 years, the investor can extend it in blocks of 5 years. Interest continues to accrue on the account during this period, further strengthening the investment.
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How much fund can be created with a monthly investment of Rs 10,000?
If an investor deposits Rs 10,000 every month in the PPF scheme and continues this investment for 15 years, the total investment amount will be Rs 18 lakh. Based on the current interest rate of 7.1 percent, this amount can grow to approximately Rs 32.5 lakh after 15 years. This amount provides financial security for future expenses such as children’s education, retirement, or any other major expenditure.
How to open a PPF account?
Opening a PPF account is very easy. You can apply for it at your nearest bank or post office. After submitting the required documents, the account is opened in a short time, and investing can begin.