The Public Provident Fund (PPF) scheme has always been a reliable and popular savings option for Indian investors. This scheme is directly administered by the central government, giving investors the confidence that their money is completely safe.
Currently, a PPF account offers an annual interest rate of 7.1%, which is quite impressive compared to other savings options. The biggest advantage of this scheme is that your money remains safe for a long time, and you can accumulate a large sum by making small investments regularly.
How much money should I invest to start?
The minimum deposit amount in a PPF account is only ₹500, and the maximum annual deposit amount can be up to ₹1.50 lakh. You can make a lump sum annual deposit or split it into 12 installments. If you’re making installments, even small installments of just ₹50 are accepted. This flexibility is what makes PPF so popular among the general public.
Total Fund of Ninesh of ₹5000
You can open a PPF account at any bank or your nearest post office. For example, if you deposit ₹5,000 into your PPF account every month, your annual investment will reach ₹60,000. At maturity in 15 years, your total corpus could reach approximately ₹16,27,284, which includes your original investment of ₹900,000 and interest of ₹727,284.
Extend for 5 years each
The biggest appeal of the PPF scheme is that it’s not just a savings tool but also a safe long-term investment tool. After maturing in 15 years, you can extend it for five more years by filling out a form. However, you can’t normally withdraw the money deposited in this account within five years. However, withdrawals before the term are possible only in special circumstances, such as serious illness or for children’s education.
Additionally, a loan facility is also available with a PPF account. This means that if you suddenly need money, you can use a portion of your account as a loan. It’s worth noting that if you don’t deposit a minimum of ₹500 in a year, your account may become inactive, but it can be reactivated with a penalty.
Why is this the best?
This PPF scheme is considered ideal for long-term investment. It not only provides a safe haven for money, but also offers the opportunity to grow substantial wealth through regular investments. Yes, it’s a convenient, safe, and government-backed option for small investors. Regular investment not only increases your savings but also lays a strong foundation for financial security for the future.
If you want to strengthen your financial future and accumulate a substantial amount of money without risk, opening a PPF account is the right choice for you. Whether you make small monthly deposits or a lump sum annually, the flexibility and security of the PPF scheme make it a highly trusted choice among investors in India.
