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Being a Government of India-backed scheme, the interest rate on post office PPF account is the same across all post offices and banks. Public Provident Fund (PPF) is a long-term savings scheme of the Government of India, which offers attractive returns and tax benefits to investors. PPF is a government-guaranteed scheme, which means your deposits are safe.
To invest in this, you can deposit a minimum of Rs 500 annually. The maximum deposit amount in a year can be Rs 1.5 lakh. The investment period can be done in 12 installments per year or through monthly deposits. Deduction can be claimed under Section 80C on the amount deposited during a year under this scheme.
Public Provident Fund (PPF) is an attractive option for long-term investors. It is a long-term savings scheme backed by the Government of India. It offers attractive interest rates and returns on the invested amount. The interest and compensation earned are not taxable under Income Tax. There is no upper limit on the investment amount in PPF. In which one can invest from Rs 500 to Rs 1.5 lakh annually.
Some features of PPF
This is a popular investment option. Its aim is to help people make small savings and get returns on their savings.
The interest rate on PPF is decided by the government and is compounded annually.
Contribution, interest earned and amount received on maturity are exempt from tax.
One can invest Rs 500 to Rs 1.5 lakh annually in a PPF account.
Any person who is an Indian citizen and above 18 years of age can open a PPF account and invest in it.
The PPF scheme was launched in 1968 by the National Savings Institute under the Finance Minister.
How to save Rs 250 to 24 lakh in 15 years?
Even small savings can turn into a big amount over time. If you save Rs 250 per day, it is equivalent to a monthly saving of Rs 7,500. Over a period of 15 years, this will give you a total PPF of Rs. 13,50,000. Investing will help. At the current interest rate of 7.1 per cent, you can earn interest of Rs 10,90,926 in 15 years. That is, your total deposit amount will be Rs 24,40,926. This calculation is only approximate and the actual return may vary depending on changes in interest rates and investment period. But it certainly shows that by saving small amounts regularly, you can accumulate a substantial amount over time.
