PPF Investment: Nowadays, everyone invests to secure their family’s future and seeks safe investment avenues. If you are looking to invest, the PPF scheme could be an excellent option for you. A key advantage of this government scheme is that the investment amount, the interest earned, and the maturity proceeds are all entirely tax-free. Therefore, if you are considering an investment, the PPF scheme could prove to be a fantastic choice. If you invest ₹11,000 per month, how long would it take to build a fund worth lakhs? Let’s look at the kind of corpus you can create.
Accumulating a fund with a monthly investment of ₹11,000
If you invest ₹11,000 per month, your annual investment amounts to ₹132,000. Since the investment tenure is 15 years, your total investment over this period would be ₹19.8 lakh. Currently, PPF offers an interest rate of 7.1%. Based on these figures, the interest earned alone would amount to ₹16,00,024. Consequently, upon maturity after 15 years, the total corpus would be approximately ₹3,580,024, comprising both your principal investment and the accumulated interest.
Key facts about PPF
100% Tax Exemption: A standout feature of PPF investment is its tax-free status; it falls under the EEE (Exempt-Exempt-Exempt) category. This means you receive tax benefits on an annual investment of up to ₹1.5 lakh under Section 80C of the Income Tax Act. Furthermore, the annual interest earned and the final maturity amount (approximately ₹35 lakh) are completely tax-free.
15-Year Investment and 5-Year Extension:
The maturity period for a PPF account is 15 years. If you aim to accumulate a corpus running into lakhs, you do not need to close the account after the initial 15-year tenure; instead, you can extend it in blocks of five years by filling out the relevant form.
Investment Limits: You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh in a PPF account during a financial year.
Interest Rate Update: PPF interest rates for the upcoming quarter of the 2026-2027 financial year have been announced. There have been no changes to the interest rates for small savings schemes for the next quarter (October to December). The Ministry of Finance provided this information on Wednesday.
Currently, the PPF offers an annual interest rate of 7.1%. Investors earn compound interest on their investments. The interest is calculated based on the minimum balance maintained in the account between the 5th and the last day of each month and is credited to the account annually on March 31st.