Public Provident Fund Scheme: Investor in India At present, there is no inclination to invest in stocks as the market has been volatile for the past few sessions. This is the perfect opportunity for those who want to get stable and high returns without worrying about the market movements to choose the government savings plans, public provident fund, or PPFLaunched by the Government of India, it is one of the many small savings schemes that not only offer stable and high returns, but also offer . tax saving option,
Features of PPF, Interest Rate, Benefits Explained
Investors can invest a minimum of Rs 500 per annum and a maximum of Rs 1.5 lakh per annum in their PPF accounts. Public Provident Fund, or PPF is one of the highest interest-paying risk-free schemes in India. The interest rate of PPF currently stands at 7.1 per cent, which is much higher than bank FDs. PPF is also one of the very few EEE schemes where the investment, interest and corpus are completely tax free.
As per the guidelines, investors can invest their money in their PPF account for 15 consecutive years. However, if one does not need the money at the end of 15 years, one can extend the tenure of the PPF account by as many years as needed. This can be done in blocks of five years by submitting the PPF account extension form.
Become a Crorepati by Investing in PPF Account: See How
With good interest returns, high popularity, low risk and tax free nature, PPF can help investors accumulate up to Rs 1 crore if invested properly. For this, investors have to follow the steps mentioned below.
If you invest Rs 417 per day in your PPF account, the monthly investment value comes to around Rs 12,500. This means that you are investing a little more than Rs 1,5,00 per year in your Public Provident Fund account, which is the maximum limit. In 15 years, the total amount deposited will be Rs 40.58 lakh, and after that you will have to extend the tenure twice in blocks of five years each.
If you keep doing this from the age of 35 to the age of 60, that is, for 25 years, then the amount you will get during maturity will be 1.03 crore rupees. This amount will be completely tax free and the total interest earned will be around 66 lakhs. The total amount deposited by you in the 25 years till your retirement age will be around Rs 37 lakhs.
On this note, it should also be mentioned that the best way to get high return on your investment is to deposit money between 1st to 5th of every month as the interest is calculated monthly.
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