PPF Account: For those who want to add some healthy amount in their bank account, then Public Provident Fund (PPF) is a very good option for them. The good thing about PPF is that you get a government guarantee of security.
Guarantee from government
Whatever amount you are investing, you will get the benefit of fixed interest. In such a situation, this scheme is very good for those who like safe investment. According to the current rules, a maximum of Rs 1.5 lakh can be deposited annually in PPF. Now if you aim deposit this amount every year in this scheme, which maturs in 15 years, how much money will you get on maturity?
Can extend for another 5 years
If you want, you can also extend PPF. To extend PPF with same amount of contribution, then you have to apply one year before maturity. PPF account can extend in a block of 5 years, that is, once the extension is done, it will be extended for 5 years directly. In this way, you can get an extension in PPF any number of times.
How much will you get after 20 years?
If you get a one-time extension of PPF, then after 15 years you can invest in it for 5 more years (total 20 years). In such a situation, if you continue to invest Rs 1.5 lakh annually in it for the next 5 years, then your total investment will be Rs. 30,00,000. At 7.1 per cent, you will get an interest of Rs 36,58,288 and the maturity amount will be Rs 66,58,288.
What if Investment for 25 years?
On the other hand, if you get it extended once more, that is, continue with this investment for 25 years, then your investment will be a total of Rs 37,50,000. Interest on this will be Rs 65,58,015 and maturity amount will be Rs 1,03,08,015.