Government guaranteed Public Provident Fund is currently getting an interest rate of 7.1 percent.
Public Provident Fund (PPF) is also included in the safe avenues of investment. It also gives good returns. In this scheme guaranteed by the central government, you can make your thousands of rupees into lakhs with the right strategy. With this, another advantage is the exemption of income tax on interest. The maturity amount in PPF is also not taxed.
By investing in PPF now, you can get an interest rate of 7.1 percent. This rate is for the period till 30 September.
It has a maturity period of 15 years and after that the investor can withdraw the amount or choose to continue with the investment. After maturity, the investment can be extended for a further period of five years.
Converting Rs 1,000 to Rs 18 lakh per month
If you deposit 1,000 thousand rupees per month in PPF, then in 15 years you will have about 3.25 lakh rupees. This amount is fixed on the assumption of no change in the interest rate during the tenure of your investment.
Out of this amount of Rs 3.25 lakh, about Rs 1.80 lakh is the investment made on your behalf and about Rs 1.45 lakh is the interest earned on your fund over 15 years. If you extend it for five years after maturity, you can get Rs 5.32 lakh.
After this, if you extend this investment for another five years, you will get about Rs 8.24 lakh. Similarly, if you keep increasing your investments for five years, it will help you get closer to your goal. If you proceed like this from the beginning of investing in PPF, then in about 35 years you will be able to save Rs 18 lakh.
