PPF Scheme : The government runs a variety of small savings schemes, allowing people to safely invest their money and earn substantial returns. The unique feature of these small savings schemes is that they allow people to invest even small amounts. One of these small savings schemes is the Public Provident Fund (PPF). The PPF scheme is quite popular among the public. With this scheme, people can build a substantial corpus with small investments. Today, we’ll tell you the maximum return you can expect from the PPF scheme. Let’s find out.
Public Provident Fund (PPF) Scheme
Investors can invest small amounts each year in the Public Provident Fund (PPF) scheme. One can invest from Rs 1,000 to Rs 1.5 lakh annually in the PPF scheme. The maturity period of the PPF scheme is 15 years, but after 15 years, it can be extended twice for 5 years each.
The PPF scheme offers an annual interest rate of 7.1 percent. This scheme also offers tax exemptions. PPF offers tax benefits under Section 80C.
Maximum returns from PPF scheme
The PPF scheme allows investments for 25 consecutive years. A maximum of Rs 1.50 lakh can be invested annually. Thus, by investing Rs 1.50 lakh continuously for 25 years, you will invest a total of Rs 37.50 lakh. At 7.1% interest rate, you will receive a total of Rs 1.03 crore upon maturity after 25 years. Consequently, you will receive a direct benefit of Rs 65.58 lakh.
After the maturity of the PPF scheme, if you wish, you can extend it without investing and get a return on the deposited amount at an interest rate of 7.1 percent.