The Public Provident Fund (PPF) scheme is a government scheme where people can invest their small savings and earn a good rate of return. Let’s explore how investing in this scheme can help you build a corpus worth lakhs of rupees.
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The Public Provident Fund (PPF) scheme is a government scheme where people can invest their small savings and earn a good rate of return. Since PPF is a government scheme, the money invested is safe and carries zero risk. If you’re looking for a scheme where you can invest small amounts and build a substantial corpus, this news is going to be very important for you. Let’s learn the details.
How does the PPF scheme work?
The PPF scheme has a maturity period of 15 years. During this period, investors are required to invest a minimum amount every year. The annual investment limit in the PPF scheme is up to ₹500. The maximum investment limit is ₹1.50 lakh. The PPF scheme provides an annual interest rate of 7.1 percent.
After the 15-year maturity period, investors can extend the term twice for 5 years each. This allows for a 25-year investment. If the investor does not withdraw the funds after maturity, they continue to receive interest at the rate of 7.1 percent.
Invest Rs 4,000 in PPF to generate Rs 13 lakh corpus
If you invest Rs 48,000 annually in the PPF scheme by saving Rs 4,000 every month and continue your investment for 15 years, you will invest a total of Rs 7.20 lakh. Upon maturity, you will receive a total of Rs 13.01 lakh, resulting in a direct profit of Rs 5.81 lakh. After 15 years, if you continue your investment for another 10 years, you will have a corpus of Rs 32.98 lakh, resulting in a profit of Rs 20.98 lakh.
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