PPF: Seeking a safe, tax-free investment with guaranteed returns? Look no further than the Public Provident Fund (PPF)! This government-backed scheme offers attractive interest rates, making it a popular choice for Indians seeking long-term financial security.
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Why Choose PPF?
- High Returns: Currently, PPF earns 7.1% interest, compounded annually, helping your money grow steadily.
- Tax Benefits: Enjoy tax exemption on your investment, interest earned, and maturity amount.
- Safety & Security: Backed by the government, PPF offers guaranteed returns and minimal risk.
- Flexibility: Invest as low as Rs.500 per year and choose to extend your account beyond maturity.
Options at Maturity
- Withdraw Everything: Enjoy the accumulated sum, tax-free!
- Extend & Invest More: Continue earning interest by extending your account in 5-year blocks and making additional contributions.
- Extend Without Investment: Maintain your balance and keep earning interest without additional contributions.
How Rs 5000 Becomes Rs 26.63 Lakh
With consistent investment and the current interest rate, here’s how your PPF can grow:
- 15 Years: Invest Rs.5,000 annually for 15 years, and your maturity amount could reach Rs.12.54 lakh.
- 20 Years: Extend your investment for 5 more years, and your corpus could balloon to Rs.26.63 lakh, almost 5 times your initial investment!
| Initial Investment (Yearly) | Maturity Amount in Lakhs (After 15 Years) | Maturity Amount in Lakhs (After 20 Years) | Maturity Amount in Lakhs (After 25 Years) |
|---|---|---|---|
| ₹1,000 | 3.18 | 5.24 | 8.17 |
| ₹2,000 | 6.37 | 10.49 | 16.35 |
| ₹3,000 | 9.55 | 15.73 | 24.52 |
| ₹5,000 | 15.92 | 26.23 | 40.88 |
| ₹10,000 | 31.85 | 52.45 | 81.76 |
| ₹12,500 | 39.82 | 65.57 | 102.18 |
Where to Open a PPF Account
- Government or Private Banks: Many banks offer PPF accounts.
- Post Offices: Conveniently open an account at your local post office.
- Minors: Open an account for your child, managed by you until they turn 18.
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