Public Provident Fund is a good investment option for people with small savings. At present the government is giving interest on it at the rate of 7.1 percent. The best thing about this scheme is that any Indian can open his PPF account under this scheme for just Rs 100. There is a provision to deposit at least Rs 500 annually.
It is mandatory to deposit at least Rs 500 annually in the PPF account. In this, up to one and a half (1.5) lakh rupees can be deposited 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 in it in the right way 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 entire month. In this, interest is given on both the PPF maturity amount and its investment. Apart from this, exemption is also available in income tax. If someone invests in PPF with the right plan then he can easily become a millionaire.
Suppose a person opens a Public Provident Fund (PPF) account at the age of 30 and invests Rs. 1.50 lakh, then as per the current PPF interest rate he will get Rs. You will get 1.5 (one and a half) lakhs. 60 years of age) will get more than crores of rupees. If an investor deposits Rs 45 lakh in 30 years (1.5×30) and earns interest around Rs 1 crore. That means he will get Rs. on maturity. Can get more than Rs 1.5 crore.