PPF Public Provident Fund: Public Provident Fund (PPF) is a long-term investment scheme. PPF is being run by the Government of India, due to which it is a completely safe scheme.
You can open PPF account in any bank or post office. You can invest a maximum of Rs 1.50 lakh annually in PPF. The lock-in period of this government scheme is 15 years. Let us know how much money you will get after maturity of 15 years by investing Rs 1,000, 2000 or Rs 12,000 every month. This is the complete calculation..
You will get this much return by investing Rs 1,00,000 annually
The interest rate on PPF in the country is decided by the Government of India. Now at the end of September, the government will decide the interest rate on savings schemes. Banks and post offices calculate returns on the basis of interest rates decided by the government. Currently interest on PPF is available at the rate of 7.1 percent.
According to the PPF calculator, if you deposit Rs 1 lakh every year in the PPF account and you get interest at the rate of 7.10 percent. You will get a total of Rs 27,12,139 on maturity after 15 years. Out of this, your total investment will be Rs 15,00,000 and you will get Rs 12,12,139 as interest.
For this reason investing in PPF is beneficial
You can invest only Rs 500 annually in Public Provident Fund i.e. PPF account. You can invest a maximum of Rs 1.50 lakh in a financial year. If you want, you can also take a loan on it from the third year to the sixth year if needed. The interest received on PPF is tax free. Apart from this, you can also get exemption on this investment under 80C under Income Tax Act.
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Can’t withdraw money for 5 years
However, you cannot withdraw your money for the next 5 years from the year of opening the PPF account. After completion of 5 years, money can be withdrawn by filling Form 2. However, if you withdraw money before 15 years, you will have to pay a penalty of 1%.
Who can open PPF account?
Any person can open this account in his/her name in any post office or bank. Additionally, the account can also be opened for another person on behalf of the minor.