Post Office PPF Scheme: Public Provident Fund i.e. PPF is a popular savings scheme, which is being run by the Central Government. Currently, 7.1 percent annual interest is being given on PPF scheme.
Under the PPF scheme, you have to deposit money at least once a year. If you want, you can deposit lump sum money in PPF account every year or you can also deposit money in installments. A minimum of Rs 500 and a maximum of Rs 1.50 lakh can be deposited in a PPF account in a year. If you are depositing money in installments, then you can make an installment of just Rs 50.
PPF account matures in 15 years
PPF account matures in 15 years. But if you want, you can extend it for 5 years each by filling a form. PPF account can be opened in any bank. If you want, you can also open a PPF account by going to your nearest post office. If you deposit Rs 50,000 every year in your PPF account, then after 15 years i.e. on maturity, you will get a total of Rs 13,56,070. Let us tell you that this includes Rs 7,50,000 of your investment and Rs 6,06,070 of interest.
Loan facility is available on PPF account
You have to take special care of one thing regarding PPF account. If you do not deposit at least Rs 500 in a year, then your account will be closed. However, it can be activated again by paying a fine. You also get the facility of loan with PPF account. As we told you that PPF is a government scheme. Therefore, every penny deposited in this account is completely safe. After opening a PPF account, you cannot withdraw money before 5 years. After 5 years, money can be withdrawn from PPF account only in some special circumstances like serious illness, children’s education.
