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Home FINANCE PPF Super Scheme: Deposit ₹ 5,000 monthly, get ₹ 42 lakh guaranteed...

PPF Super Scheme: Deposit ₹ 5,000 monthly, get ₹ 42 lakh guaranteed in 25 years

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PPF Scheme: With the regular habit of savings and investment (savings and investment), you can create a fund of lakhs in the long term. There are many such government schemes, in which investors have guaranteed income.

One scheme is Public Provident Fund (PPF). This is a good option for making substantial corpus in the long term. Investors are benefited in many ways in this. First it comes in EEE (Exempt, Exempt, Exempt) category. Second, it offers guaranteed interest, which the government decides every quarter.

The third advantage is that the investment in it remains safe. There is no effect of market fluctuations. Up to Rs 1.5 lakh can be invested in PPF every year. Being a long term savings product, investors get tremendous benefit of compounding.

PPF: Account can be opened with ₹ 500

In the Public Provident Fund (PPF) scheme, an account can be opened with a minimum of Rs 500. This account can be opened in the nearest post office branch or designated bank branch. Minimum 500 and maximum 1.5 lakh rupees can be deposited in this account in a financial year. From January 1, 2023, this scheme is getting 7.1 percent interest annually. Compounding in this scheme is done on an annual basis. The maturity of PPF account is 15 years. But account holders can apply to increase it in a block of 5-5 years. In this, he also gets the option of continuing the contribution or not.

42 lakh fund with 5,000 monthly investment

In PPF, investors get the power of compounding. Suppose you deposit Rs 5,000 every month in your PPF account. In this way your annual investment becomes Rs.60,000. When your PPF account matures in 15 years, when you will get Rs 16,27,284. If you extend the deposit for the next 10 years in a term of 5-5 years, then after 25 years your fund will be around 42 lakhs (Rs 41,57,566). In this, your contribution will be Rs 15,12,500 and interest income will be Rs 26,45,066.

Keep in mind here that this calculation is based on the entire maturity period at 7.1% interest per annum. In PPF account, the government changes the interest rates on a quarterly basis. If the interest rates are low or high, then your corpus can also increase or decrease.

Money completely safe, tremendous benefit of tax

The government sponsors small savings schemes. Therefore, in this, the customer gets complete protection on the investment. There is a sovereign guarantee on the interest earned in it, which makes it safer than bank interest. Bank deposits are insured up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Tax benefit is available in PPF under section 80C of the Income Tax Act. In this, deduction of investment up to Rs 1.5 lakh can be taken in the scheme. Interest earned in PPF and maturity amount are also tax free. In this way investment in PPF comes under EEE category. Loan facility is also available on PPF account. You can apply for a loan after completion of one year from the end of the year in which the PPF account is opened and before completion of 5 years.

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