Inflation, job insecurity, and market volatility have forced the average person to focus on financial planning. Everyone wants their regular savings to grow into a substantial sum in the future, but the risks associated with the stock market and mutual funds deter many from investing. Therefore, people look for options that are safe, reliable, and offer good returns in the long run.
Read More- Gold Rates Jump Today – See 24K, 22K & 18K Gold Live Prices Per Tola on Jan 5
📌 Also Read: Silver Rate Today - Rate Jumps Rs 6,000 Amid US-Venezuela Conflict, Check Latest City Rates
What is PPF and why is it considered safe?
The Public Provident Fund (PPF) is a long-term savings scheme supported by the Government of India. The amount invested and the interest earned on it are completely safe because it is guaranteed by the government. This scheme is designed for those who want to build a fund for the future gradually and with discipline. A major advantage of PPF is that the interest earned is completely tax-free.
📌 Also Read: Ration Card e-KYC Now in Minutes, Learn the Online and Offline Process
PPF account tenure and investment rules
The basic tenure of a PPF account is 15 years. During this period, investors can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually. The amount can be deposited in a lump sum or in installments throughout the year. Currently, PPF offers an annual compound interest of approximately 7.1 percent, which is added to the account every year and significantly increases the investment over time.
📌 Also Read: NPS-Vatsalya Big Update: ₹1,000 Investment at Birth Can Grow Into ₹4.2 Crore
What happens after 15 years?
Once the 15 years of the PPF account are complete, the investor has the option to withdraw the money or extend the account. If there is no immediate need for the money, the account can be extended in blocks of 5 years. This way, the total tenure can be extended up to 25 years. Upon extension, the deposited amount continues to earn interest, allowing the fund to grow continuously without the need to find a new investment plan.
📌 Also Read: Electricity Bills Would Not Rise This Winter, Use Geysers and Heaters Like This
How can you build a fund of millions with just Rs 4000 a month?
If a person deposits Rs 4,000 every month, or Rs 48,000 annually, into a PPF account and continues this investment for 15 years, the total investment would be approximately Rs 7.20 lakh. Due to compounding interest, this amount can grow to around Rs 13 lakh after 15 years. This means the investor receives an additional benefit of approximately Rs 5.8 lakh, which is completely tax-free.
📌 Also Read: Business Idea - Start Your Own Business for Just Rs 5,000, Know How to Start and Earn Big!
What are the benefits of continuing the investment for 25 years?
If the investor extends the PPF account beyond 15 years and maintains the investment for a total of 25 years, the effect of compounding becomes even more significant. After this period, the estimated fund can reach approximately Rs 33 lakh. Of this, about Rs 21 lakh is earned solely through interest. This provides a strong foundation for retirement planning or securing a child’s future.
📌 Also Read: Dubai Gold Price Soars by 200 Dirhams, A Windfall for Investors and Jewelry Collectors!
Read More- Umar Khalid and Sharjeel Imam’s bail petitions rejected by the Supreme Court
Why is PPF still a reliable option today?
📌 Also Read: Silver Rates Today - Silver drops by Rs 4,000; find out the 1‑kg price in 10 cities
PPF remains popular today because it offers a government guarantee, tax-free returns, the ability to start with small amounts, and steady growth over the long term. It is ideal for those who want to save in a disciplined manner while avoiding risk. If someone wants their small savings to grow into a substantial sum over time, PPF remains a strong and reliable option.