Many people are eager to invest their money in reliable government schemes. If you’re on the lookout for a great investment option, consider the Public Provident Fund (PPF). PPF is a well-liked choice among investors, allowing individuals to grow their savings significantly with relatively small contributions. So, if you’re interested, PPF could be a smart place to invest your funds.
You can begin your investment journey with just Rs 500
To get started with PPF, you’ll need to open a PPF account and make consistent contributions. You can kick off your investment with a minimum of Rs 500 per year, while the maximum annual investment limit is Rs 1.5 lakh. Keep in mind that an individual is allowed to maintain only one PPF account. As for the interest rate, you can earn 7.1 percent per annum on the amount you deposit in your PPF account.
You’ll also enjoy tax savings
Regarding the maturity period, PPF investments can be made for 15 years. After this period, you have the option to extend it in blocks of 5 years. Additionally, if needed, you can withdraw funds after 6 years of investment. One of the benefits of PPF is that it offers tax savings; you can claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
Here’s how PPF can help you accumulate Rs 1 crore
If your goal is to build a substantial fund through PPF, you would need to invest Rs 1.5 lakh annually for 25 years. By following this strategy, you could potentially accumulate a total of Rs 1,03,08,015 upon maturity.
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