PPF is a reliable savings scheme of the Government of India. People can invest in it for a long term. The PPF scheme is specially designed for those who want a secure investment that gives good returns. A PPF account matures in 15 years.
It can then be extended in blocks of 5 years. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in this scheme annually. If you invest Rs 7,000, Rs 11,000 or Rs 12,000 every month in a PPF account, how much return will you get after 15 years?
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Where can you open a PPF account?
You can open a PPF account at a post office or any authorized bank. The rules, interest rates and tax benefits are the same in both places. The only difference is the convenience and availability. You can open an account wherever is most convenient for you.
What are the rules after maturity?
When the PPF account completes 15 years, you can withdraw the entire amount by submitting your passbook and account closure form to the post office or bank. If you wish, you can keep the account active without making any fresh deposits. In this case, interest will continue to accrue at the prevailing interest rate. During this period, you can withdraw the amount once a year or withdraw the entire amount whenever you want.
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Return on investment of Rs 7000 per month:
If you deposit Rs 7000 per month in PPF, your annual investment will be Rs 84,000. In 15 years, your total investment will be Rs 12,60,000. The estimated interest earned on this can be around Rs. 10,18,197. This means that the total amount at maturity can be around Rs. 22,78,197.
Return on investment of Rs. 11,000 per month:
If you deposit Rs. 11,000 per month, the investment will be Rs. 1,32,00 per year. The total investment in 15 years will be Rs. 19,80,000. The estimated interest earned can be around Rs. 16,00,024. Therefore, the total amount at maturity can be around Rs. 35,80,024.
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Return on investment of Rs. 12,000 per month:
If you invest Rs. 12,000 per month, then you will deposit Rs. 1,44,000 in a year. Your total investment in 15 years will be Rs. 21,60,000. The estimated interest earned on this can be around Rs. 17,45,481. Therefore, the total amount at maturity can be around Rs. 39,05,481.