Public Provident Fund: Safest Investment Option? Government Backed Scheme, Invest Rs 350 Daily and Get Crores on Maturity

Public Provident Fund

Public Provident Fund: The nation’s population have unquestioning faith in PPF. Putting money into it does not engender loss aversion because the Central Government is guaranteeing this arrangement. Let us tell you about the PPF scheme’s features.

Flexible Contribution Limits

You can contribute as little as Rs 350 and as much as Rs 127750 annually in this government plan. In a fiscal year, deposits over Rs 1.5 lakh are not eligible for interest. You can make lump sum or installment deposits into your PPF account.

Competitive Interest Rates

Compared to fixed deposits in banks and post offices, provident funds yield higher interest rates. Currently, the government offers PPF interest rates of 7.1% annually. On an investment, compound interest is earned. Every year in March, the interest payment is made. Interest rates are reviewed on a quarterly basis, every three months. The finance department has the last say over the interest rate.

When it comes to tax exemption, this plan is fantastic. Employees invest in this scheme as a result. You can receive tax exemptions and high returns by making a PPF deposit. Under Income Tax Section 80C, you are eligible for tax exemption up to a total of Rs. 1.5 lakh. The money received upon maturity, interest earned on the investment, and PPF investments are all fully tax free. PPF investments are required for a 15-year period.

Fifteen-Year Maturity Period

This government programme has a fifteen-year maturity span. You may, however, take out 50% of the deposited amount if you really need the money. But still. Six years from the account’s opening should pass for this. This sum can only be withdrawn at that point.

With just a small financial investment in this government programme, you too can become a millionaire. Its formula is quite simple. At the present interest rate of 7.1 percent, you can invest Rs 350 each day, or Rs 127750 per year, and obtain a return of Rs 1,12,00,534 in 26 years. Using the PPF calculator, you may verify this for yourself.

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