Small Savings Scheme: Every parent dreams that their children will never face financial difficulties in the future. For this, parents start making small savings. This problem is more common in middle-class families. Middle-class families can secure their children’s future by saving small amounts of money. This requires an investment scheme. There’s no need to worry. The Indian government is running several schemes that people from all walks of life can benefit from.
If you start investing just Rs. 500 every month in your child’s name, that amount can turn into lakhs in a few years. We are talking about the government’s reliable and popular investment scheme, PPF (Public Provident Fund). This scheme offers maximum returns to investors with minimal investment.
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How long will it take to become a millionaire?
PPF is a long-term savings scheme with no age limit for investment. This means a PPF account can be opened in the name of young children as well. The maturity period of this scheme is 15 years, during which the invested amount gradually grows. After 15 years, you can secure your children’s future with the amount received at maturity.
Complete calculation for Rs. 500 per month
If you deposit Rs. 500 every month, your annual investment will be Rs. 6000. At this rate, the total investment over 15 years will be Rs. 90,000. Currently, PPF offers an annual interest rate of 7.1 percent. Based on a 7.1 percent interest rate, you will receive Rs. 72,728 in interest on your total investment over 15 years.
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How much will you receive at maturity?
Regarding the amount received at maturity in PPF, your total investment will be Rs. 90,000. Based on this, you will receive Rs. 72,728 in interest. This means that a total of ₹1,62,728 will be received upon maturity. Investors can accumulate a substantial sum for their children over 15 years by saving just ₹500 per month in this way.
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Adarsh P
Adarsh Pal is a content writer at Timesbull Media. He specializes in writing news related to industry updates, the automotive sector, banking, telecommunications, the travel sector, and personal finance. Adarsh has previously worked with several digital media channels. He is skilled at presenting news accurately and disseminating information based on...
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