PPF Scheme: The Central Government runs many types of savings schemes to provide financial security to the common people of the country. PPF i.e. Public Provident Fund Scheme is also a scheme run by the Central Government. PPF has been a popular savings scheme for a long time. Currently, 7.1 percent annual interest is being given on the PPF scheme. If you are investing in PPF scheme then you have to deposit money at least once in a year. Apart from this, for your convenience, you can deposit a lump sum every year in the PPF account or continue investing in maximum 12 installments.
PPF account can be opened with an annual investment of just Rs 500
Under the PPF scheme, a minimum of Rs 500 and a maximum of Rs 1.50 lakh can be deposited in a year. PPF account matures in 15 years. PPF account can be opened in any bank other than post office. If you invest Rs 50,000 every year in your PPF account, then after 15 years i.e. on maturity, you will get a total of Rs 13,56,070, which includes Rs 7,50,000 of your investment and Rs 6,06,070 of interest.
Loan facility available on PPF account
You also get many types of facilities with PPF account. Yes, you can easily get loan with PPF account. However, you have to take special care of one thing. You have to deposit at least Rs 500 every year. If you do not deposit at least Rs 500 in a year, your account will be closed. But, there is no need to take tension here because it can be activated again by paying a fine. You cannot withdraw money from this account for 5 years from the date of opening PPF account. After 5 years, money can be withdrawn from PPF account only in certain circumstances like serious illness, children’s education.
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