Public Provident Fund: The PPF Scheme offered by the Central Government has gained immense popularity among the public.
It is a government-backed scheme that provides investors with a substantial fund of lakhs of rupees. Today, we will explain how you can accumulate a total of 42 lakh rupees through the PPF scheme. This scheme not only offers attractive returns but also guarantees the security of your money, making it an excellent investment choice.
Invest in Invest in PPF for a Secure Future
The Public Provident Fund (PPF) scheme is a great choice for long-term investments. With an annual investment limit of Rs. 1.5 lakh, it provides the advantage of compounding interest. The best part is that government schemes like PPF remain unaffected by market fluctuations.
How to Accumulate 42 Lakhs
By investing Rs. 5,000 per month in the PPF scheme, your yearly investment will total Rs. 60,000. If you continue this investment for 15 years, your maturity amount will be Rs. 16,27,284. If you extend the deposit for another 10 years in blocks of 5 years, your total fund after 25 years will be around 42 lakhs (Rs. 41,57,566). Your contribution will be Rs. 15,12,500, while the interest income will amount to Rs. 26,45,066.
Where to Open an Account?
You can open a PPF account with a minimum deposit of Rs. 500. It can be done at your nearest post office or bank branch. Starting from January 1, 2023, the government offers an interest rate of 7.1% for this scheme, and the maturity period is 15 years.
Opportunity for Extension
PPF account holders have the option to extend their accounts in blocks of 5 years. They can choose to continue making contributions or opt for no further deposits.
Apart from tax exemption under section 80C, the PPF scheme also provides the benefit of tax-free interest. After completing 5 years in the scheme, you can apply for a loan if needed.