Public Provident Fund is a good investment option for small savings. At present, the government is paying interest on this at the rate of 7.1 percent. The best thing about this scheme is that any Indian can open their PPF account for just Rs 100 under this scheme. There is a provision to deposit at least Rs 500 annually.
It is mandatory to deposit at least 500 rupees annually in PPF account. It can be deposited up to one and a half (1.5) lakh rupees in a year. Its lock in period is 15 years. You can also open it in a bank or nearest post office.
If a person invests money properly in it, then he can get maximum benefit. According to PPF rules, if a person deposits money by the 5th of the beginning of the month, then he gets interest for the whole month.
It gets interest on both PPF maturity amount and its investment. Apart from this, there is also a discount in income tax. If someone invests in PPF with the right plan, he can easily become a millionaire.
Suppose a person opens the Public Provident Fund (PPF) account at the age of 30 and invests the rupee. If it is 1.50 lakhs, then according to the current PPF interest rate, it is Rs. 1.5 (one and a half) lakhs will be available. The age of 60 years) will get more than crores of rupees. If an investor deposits Rs 45 lakh in 30 years (1.5 × 30) and earns about Rs 1 crore. That is, he will get money on maturity. You can get more than 1.5 crores.
