PPF Investment: The risk in this scheme is almost zero as it is fully backed by the government. Along with this, the loan facility is also available to the investors in this scheme.
Public Provident Fund: Public Provident Fund (PPF) is a great investment option. The risk involved in investing in PPF is almost nil as it is fully protected by the government. Investing in PPF can give you a lot of profit. You have to choose the investment tenure carefully. Very good returns can be earned from PPF by investing in the long term. You can get more than Rs 12 lakh by depositing just Rs 1000 every month.
Rate of interest
- The central government revises the interest rate on PPF account every quarter.
The interest rate is usually 7 percent to 8 percent, which can increase or decrease slightly depending on the economic situation. - Currently the interest rate is 7.1 per cent, which is compounded annually. This is more than the fixed deposits of many banks.
- According to the rules, a minimum of Rs 500 and a maximum of Rs 1.5 lakh per year can be deposited in the PPF account every year.
Tenure
The maturity period of PPF account is 15 years. After that all the money can be withdrawn
Apart from this, the PPF account can be further extended for each block of 5 years.
Investment protection
This scheme is supported by the government, so investing in it is completely safe.
There is a sovereign guarantee on the interest earned in this.
Loan facility
Subscribers can avail loan against PPF account at a suitable rate of interest.
You can take advantage of the loan in the third and sixth year after opening the account.
This is especially beneficial for those applying for the loan in a short period of time.
Know the calculation of this scheme
- If you deposit Rs 1000 every month in PPF account, then the investment amount in 15 years will be Rs 1.80 lakh. Rs 1.45 lakh interest will be available on this.
- That is, a total of Rs 3.25 lakh will be received on maturity.
- If you extend the PPF account for 5 more years and continue investing Rs 1000 every month, then your total investment amount will be Rs 2.40 lakh.
- Interest of Rs 2.92 lakh will be available on this amount. In this way, you will get Rs 5.32 lakh on maturity.
- If after completion of maturity period of 15, you extend it three times for 5 years each (total thirty years) and continue investing Rs 1000 every month, then the total amount invested by you will be Rs 3.60 lakh . Interest on this will be Rs 8.76 lakh. In this way, you will get a total of Rs 12.36 lakh on maturity.
(Here informalnewz.com is not advising to invest in any scheme. The information given here is only for the purpose of informing. Take expert advice before depositing money in any scheme)
