Public Provident Fund: For the common people who have low income or who come from the middle category or even below, the government has some such savings schemes, through which they can save their capital and save a lot of money in the future. as can be found. One of them is Public Provident Fund or PPF. It was started in 1968 by the National Savings Institute of the Ministry of Finance, Government of India. This is a completely tax free savings option.
Currently, PPF offers an interest rate of 7.1 per cent annually, and the interest is calculated on a monthly basis. 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.
Many people have plans to start saving for the future at an early age or in their youth. If you want that you get good interest, good returns and no risk, as well as your savings are tax free, then you can earn a profit of up to one crore rupees by investing in the right way. For this, you just have to invest in this way with a little caution.
If you invest Rs 417 per day in your PPF account, then the monthly investment value will be Rs 12,510. It means that you are investing Rs 150120 per year in your Public Provident Fund account. In 15 years, the total deposit amount will be Rs 40.58 lakh, and after that you will have to increase it twice in every five year block.
If you start it at the age of 25 and do it for the next 25 years, then the amount you will get during maturity at the age of 50 will be Rs 1.03 crores. This amount will be completely tax free and the total interest will be around Rs.66 lakhs. That is, the total amount you would have deposited in 25 years would be around Rs 37 lakh.