PPF Investment: Investing Rs 3,000 per month can become Rs 24.7 lakh in 25 years, know the complete account.

At present, most of the people rely on government projects for safe investment. One of the popular names in that list is Public Provident Fund (PPF). Due to government guarantee, compound interest facility and tax exemption, this project has long been the first choice of investors. Regular savings of small amounts can turn into big funds over a long period of time.

What is PPF? Why so popular?

Public Provident Fund or PPF is a long-term savings scheme supported by the Central Government. Any Indian citizen can open an account in this project. It is mandatory to deposit a minimum of Rs 500 per year in this project. On the other hand, a maximum of Rs 1.5 lakh can be invested in a financial year. PPF account can be opened in post office and most government and private banks.

How much will it be if you deposit Rs 3,000 per month in 15 years?

Currently, 7.1 percent interest is being given annually on PPF, which is calculated at compound rate.

If Rs 3,000 is deposited every month, then –

Total investment per year: Rs 36,000

Total investment in 15 years: Rs 5.40 lakh

Expected Maturity Value: Around Rs 9.76 Lakh

Potential income from interest: About Rs 4.36 lakh

Note: The actual maturity figure may vary depending on the interest rate prescribed by the government and the tenure of deposit.

How can a fund of Rs 25.73 lakh be created in a year?

Although the original tenure of PPF is 15 years, there is an opportunity to extend it to 5 years.

If an investor continues to invest Rs 3,000 per month for a total of 25 years, then –

Total investment: around Rs 9 lakh

Expected Maturity Value: Around Rs 24.73 Lakh

Here the amount of investment increases significantly due to the effect of compound interest over a long period of time.

What are the main benefits of PPF?

Central government support and security

compound interest benefit

Benefit of tax exemption as per Section 80C of the Income Tax Act (as per the rules)

Fixed tax benefits on maturity proceeds and interest

Long term wealth creation opportunity

Why is this scheme suitable?

PPF can be an effective option for those who want to save long term with low risk, build a retirement fund or gradually accumulate wealth for their child’s future.

Thinking of long term safe investment? Public Provident Fund (PPF) – By investing just Rs 3,000 per month, you can grow a fund of around Rs 24.73 lakh in 25 years with the benefit of compound interest. How is it possible, how much money has to be invested and what are the benefits of this scheme – detailed below.