PPF account is opened for 15 years. After investing for 15 years, you get the invested amount along with interest at the time of maturity. In this you also get the benefit of tax exemption and facilities like loan.
Compared to bank FD or RD, PPF (Public Provident Fund- PPF) is considered much better. Any Indian citizen can invest in this scheme. The advantage of PPF is that any person gets the benefit of compounding interest on the amount invested. If you prefer to get guaranteed returns on your investment rather than the ups and downs of the market, then you can choose the PPF scheme.
PPF account is opened for 15 years. After investing for 15 years, you get the invested amount along with interest at the time of maturity. In this you also get the benefit of tax exemption and facilities like loan. Every person can invest in this scheme according to his savings. Currently, PPF is available at the rate of 7.1%. If you also want to invest in it, then know how much benefit you will get on investing Rs 1000, 2000, 5000 and 10000 in PPF.
On investing Rs 1000
If you invest Rs 1000 every month in PPF, then you will invest Rs 12 thousand in one year and Rs 1,80,000 in 15 years. According to the PPF calculator, you will get Rs 1,45,457 as interest at the compounding interest rate of 7.1%, which is slightly less than the amount you invested. In this case, you will get a total of Rs 3,25,457 on maturity.
On investment of Rs 2000
If you make a monthly investment of Rs 2000, the total annual deposit will be Rs 24000. In this way, in 15 years you will deposit Rs 3,60,000 and you will get Rs 2,90,913 as interest on it. In this way, at the time of maturity you will get a total of Rs 6,50,913 i.e. you will get almost double the profit.
On investment of Rs 5000
By making a monthly investment of Rs 5000 every month in PPF account, you will deposit a total of Rs 60,000 in a year. Your total invested amount in 15 years will be Rs 9,00,000. On this, you will get Rs 7,27,284 as interest at the rate of compounding interest of 7.1%. In this way, after 15 years, the total amount including principal and interest will be Rs 16,27,284.
On monthly investment of Rs 10,000
By making a monthly investment of Rs 10,000 every month, you will invest a total of Rs 1,20,000 in a year. According to this, you will invest a total of Rs 18,00,000 lakh in 15 years. On which you will get Rs 14,54,567 as interest. In this way, on maturity, you will get a total of Rs 32,54,567 including principal and interest.
