Public Provident Fund Scheme: If you want to earn good money by investing for a long time, then Public Provident Fund can be a great option for you. The most special thing about Public Provident Fund is that it not only gives tremendous returns but also your money is completely safe from market risk. If you keep investing continuously, you can get a maximum account of up to Rs 40,68,000 after maturity.
Not only this, if you want, you can extend the investment in Public Provident Fund beyond maturity and can make an amount of up to Rs 1 crore. By investing money in this scheme, you can get more benefits than fixed deposits. Let us tell you that you can open this PPF account in the name of your children also. It can be opened easily in any post office or bank. Its maturity time is 15 years. If you want, you can extend it beyond the maturity date.
How to make more than Rs 40 lakh
Let us tell you that at present you are getting about 7.1 percent interest on PPF. In this scheme you can deposit maximum Rs 1.5 lakh annually. This amount can also be easily deposited by dividing it into monthly installments. After maturity of 15 years, you get around Rs 40 lakh.
You need to deposit at least Rs 500 in this scheme within a financial year, if you do not do this then your account also gets closed. If you want to restart your account, then before the maturity of the account i.e. 15 years, a minimum subscription fee of Rs 500 and Rs 50 for every default year has to be deposited, after which your account is restarted.
This is how Rs 1 crore will be made
Now this question must be roaming in your mind that how one crore rupees can be made from PPF. So let us tell you that you can deposit a maximum of Rs 1.5 lakh in 1 year. On this you are given interest at the rate of 7.1 percent. It is noteworthy that the rule of compounding applies here. That is, after receiving the interest amount, you get interest on your total amount, due to which after some time the money starts increasing very fast.
If you invest Rs 1.5 lakh per year continuously for 25 years, you will be able to collect a total of Rs 37,50,000. After maturity of 25 years, this amount will be more than Rs 1 crore i.e. on Rs 37,50,000 you will get interest up to Rs 68,58,000.
PF is also chosen by investors because there is no tax on the money received in it, it is a tax free scheme. People also like this scheme because even though the returns in it are slightly less, but due to the tax benefits, this scheme becomes much better.
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