The future can be made better with Public Provident Fund. It gives better returns with tax exemption. This is also a good scheme in terms of security.
Better return on investment in PPF scheme
Investing in the right scheme is very important for a secure future. This gives you a hefty amount at the time of need. If you want to invest for a long time, then Public Provident Fund (PPF) can be a better option. In this, you can get a hefty amount of up to 26 lakhs on maturity by saving just one thousand rupees every month.
You will get good interest in this scheme. Also, there is a saving on tax as well. PPF account matures in 15 years. But if you want, you can extend it for 5 to 5 years. At present, 7.1 percent interest is being given on PPF. To get more returns in this, investing in PPF from a very young age is more beneficial.
15 years investment know how much will be the profit
Investment in PPF is for a minimum period of 15 years. In such a situation, if you keep depositing Rs 1000 every month for 15 years, then you will deposit a total of Rs 1.80 lakh. According to the current 7.1% interest rate, you will get Rs 3.25 lakh after 15 years. That is, you will get the benefit of Rs 1.45 lakh in this.
Know how to get 26 lakhs
There is a facility to increase the PPF account every 5 years. If you want a good corpus at the time of retirement then keep increasing it and by the 40th year your money will increase a lot. That is, in the 40th year, the money in your PPF account will increase to Rs 26.32 lakh. For example, if you are adding Rs 1000 from the age of 20, then by retirement your corpus will be Rs 26.32 lakh.
Account opening process
PPF account can be opened in any post office or bank. It can be opened in your own name or with the Guardian for a minor. However, the facility of joint account is not available in this. You can nominate anyone if you want. The minimum amount to open a PPF account is Rs 200. Whereas the maximum investment limit has been fixed at Rs 150,000 per year. This amount can be deposited in a maximum of 12 installments per year or in lump sum.
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