The government runs many schemes for the people. There are many different types of schemes for different people. Investment is a very important part of people’s life.
If you invest in a good place, you will never be short of money when you need it. That’s why people keep depositing small amounts in different schemes.
Some people invest in mutual funds, some in the stock market and some people invest in government investment schemes.
One such great savings scheme is PPF i.e. Public Provident Fund. By investing in it, you can deposit funds worth lakhs of rupees in a few months. What is the investment formula in this, how can you deposit funds worth lakhs of rupees, we tell you.
Open an account in the Public Provident Fund
You do not need any much money to open an account in the Public Provident Fund i.e. PPF. If you want, you can open your account in this scheme for just ₹ 500.
For this, you have to deposit at least ₹ 500 in a financial year. If you want to invest more in it, you can deposit Rs 1.5 lakh annually. This is the maximum limit in PPF. More than this amount cannot be invested in a year.
The maturity period is 15 years
The maturity period of Public Provident Fund i.e. PPF is 15 years. That is, after opening an account in it, you have to invest for 15 years. After this, if you want, you can withdraw the entire money from your PPF fund. But if you do not have to need money.
So you can run the account for 5 more years. Let us tell you that the lock-in period of the scheme is 5 years. That is, you cannot do withdraw money before this. You can withdraw money after 5 years. But 1% will be deducted from your fund on that.
If you deposit at least ₹500, you will get this much in 15 years
If you deposit the minimum investment amount i.e. ₹500 every month in your PPF account, then at this interest rate you will get Rs 1.63 lakh after 15 years. If you invest Rs 1000 every month, you will get about Rs 3.5 lakh after 15 years.
This much has to be deposited for 40 lakhs
If you want to deposit a fund of more than Rs 40 lakh in 15 years, then for this you have to deposit about Rs 12500 in your PPF account every month.
If you deposit Rs 12500 every month for 5 years, then you can get about Rs 40.68 lakh after 15 years. Let us tell you that the PPF interest rate is reviewed every 3 months. In this, your money can increase or decrease.