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PPF Investment: Nowadays, in this era of inflation, everyone wants to save some part of their earnings and invest it in such a place where they not only get strong returns but the money is also safe. In such a situation, PPF scheme is quite popular and along with getting more than 7 percent returns, the government itself guarantees the security of your investment. As per the calculations, you can collect Rs 10 lakh through this government scheme by saving just Rs 100 every day. Let us know how…
15 year maturity and benefit of compound interest
In terms of investment, there are many such schemes available in the market which are giving excellent returns. However, the risk factor is also high in most of these. But there is no scope for risk in PPF investment, rather the government itself protects your investment. This account matures in 15 years and if the investor wishes, he can extend it further also. Apart from this, another advantage that makes it popular as the best option is compounding, yes, the return on investment in PPF is given according to compound interest.
Minimum investment Rs 500
By opening an account in this government scheme, you can start investing with just Rs 500 annually and can deposit a maximum of Rs 1.50 lakh in a year. If we look at the interest rate on investment, an interest rate of 7.1 percent is offered. However, it keeps changing from the government side. The special thing is that by investing in this scheme, you can get more interest than the fixed deposits (FD schemes) of many banks.
Now if we look at the calculation of getting Rs 10 lakh by saving Rs 100 daily, then according to this you can save Rs 3000 every month and according to this your savings in one year will be Rs 36,000. Now if we look at the PPF calculator, if you invest in this manner till the maturity period of 15 years, you will get a total of Rs 9,76,370. The investment made by you in this will be Rs 5.40 lakh, while the interest given by the government will be Rs 4,36,370.
You will get Rs 15 lakh in 20 years
Now, as mentioned, you can extend your PPF investment even after maturity, so if this investment is continued for 5 years, you will get more than double the return. You will invest a total of Rs 7,20,000 in these 20 years and you will get Rs 8,77,989 only from interest. In such a situation, by saving just Rs 100 daily, you will have a fund of Rs 15,97,989 in 20 years.