This savings scheme is 53 years old and is constantly wooing investors. Its biggest feature is that it is a tax saving scheme along with giving returns.
There is a steady decline in the interest rate on savings and fixed deposits. In such a situation, investors are looking for such options where they get excellent returns and the investment is also safe. If an investor is willing to take the risk, then he invests more money in mutual funds and the stock market. If you do not want risk, then fixed income instruments are much better. Today, we are going to tell you about a government scheme where when you start investing from 1 lakh rupees, it becomes 27 lakh rupees in 15 years.
Public Provident Fund (PPF) is an excellent investment option to date. It was started in 1968. It has been wooing investors for the last 53 years. Its biggest feature is that it is a saving scheme as well as a tax saving scheme. It comes under the EEE category. This is a long term investment scheme in which you can avail deduction in tax by investing every year. When it matures, both the maturity amount and the interest income are completely tax free. Talking about returns, it is guaranteed. In such a situation, you know how much your investment has been made.
1 lakh every year, you will get 27 lakhs on deposit
Currently the interest rate on public provident fund is 7.1 percent. You can invest 500 rupees and maximum 1.5 lakh rupees in a year. This scheme is 15 years old. From this, it can be increased in blocks of 5–5 years. If an investor starts depositing 1 lakh rupees in it every year, then after 15 years from the current rate, he will get 27 lakh 12 thousand 139 rupees, which will be completely tax free. The principal amount in this is 15 lakh rupees and the interest income is 12 lakh 12 thousand 139 rupees. If you invest 500 per month, then after 15 years, you will get Rs 162728. If you invest 1000 rupees every month, then after 15 years you will get 325457 rupees. If 10 thousand rupees are invested every year, then they will get 271214 rupees.
Loan and partial withdrawal facility on PPF account
PPF account holders also get loan facility. This facility is available in the third and fifth year. This can be up to a maximum of 25 per cent of the amount deposited in the second year. Although the lock-in period for this is 15 years, but after the completion of 6 years, partial withdrawal facility has been provided from the seventh year. A contributor can withdraw up to a maximum of 50 per cent of the amount deposited in his fund.
