In such uncertain times everyone wants to save more and more money, here we will give you information about such a savings scheme, in which you can get more than Rs.12 lakhs in return of investment of just Rs.1000 per month.
This is Public Provident Fund (PPF). PPF is one such scheme on which you will get guaranteed returns. It was started in 1968 by the National Savings Organization as a small savings. You can earn very good returns from PPF over a long period if the investment tenure is chosen properly.
How Much Interest
Public Provident Fund currently offers an interest rate of 7.1 percent. According to the rules, a minimum of Rs 500 and a maximum of Rs 1.5 lakh per year can be deposited in the PPF account. PPF account has a maturity period of 15 years, after which you can either withdraw all your money or extend the PPF account further for every block of 5 years.
Know Multiplication
If you deposit Rs 1000 every month then in 15 years your investment amount will be Rs 1.80 lakh. The interest on this will be Rs 1.45 lakh. In this way you will get a total of Rs 3.25 lakh on maturity. Now if you continue investing Rs 1000 every month by increasing the tenure of your PPF account for another 5 years, then your investment amount will be Rs 2.40 lakh. The interest on this will be Rs 2.92 lakh. In this way, you will get Rs 5.32 lakh on maturity.
You will get more than Rs 12 lakh like this
Now if you extend the tenure of PPF account for 5-5 years thrice like this, then you will have to invest for a total of 30 years. 1000 every month for 30 years, then your investment amount will be Rs 3.60 lakh. The interest on this will be Rs 8.76 lakh. In this way you will get a total of Rs 12.36 lakh on maturity.
No Risk
PPF investment is 100% risk-free as it is guaranteed by the Government of India. It is also not linked to the stock market. If your PPF account is in any bank and that bank defaults, then in this case your PPF balance will be 100% safe. Because bank account holders get insurance on the amount of Rs 5 lakh by the Government of India. But this rule does not apply to PPF.
Get loan easily
In case of an emergency, the PPF account holder can avail a loan at an interest rate of just 1 per cent per annum. However, this loan can be availed on PPF only from the third to the sixth year of opening the account. After six years of opening a PPF account, one also becomes eligible for partial withdrawal from the PPF balance. One can deposit money in his PPF account 12 times in a financial year. You can also deposit money in your PPF account in monthly mode like SIP.
