Many types of government schemes are run by the Central Government, in which PPF (Public Provident Fund) is a special scheme. By investing money in this, you can create a fund of Rs 1 crore. You can start investing in it with just Rs 500. Public Provident Fund (PPF) is one of the best investment options. You can take this scheme from any government bank, post office, and private bank.
A maximum of Rs 1.5 lakh can be invested in this account in a year and a maximum of Rs 12,500 per month. Apart from FD, this account gives good returns as compared to many small savings schemes. The maturity period of PPF is 15 years, but you can extend it over a period of 5-5 years.
Check how much interest will you get?
Talking about the interest rate, at present, it is getting the benefit of interest at the rate of 7.1 percent. Explain that interest is paid every year in the month of March. Apart from this, in PPF, you can open a PPF account in your name or as a guardian of a minor.
Learn how to make a fund of 1 crore
If we want to collect one crore rupees from this scheme, then we have to do this investment for 25 years. By then, Rs 37,50,000 would have been deposited on the basis of an annual deposit of Rs 1.5 lakh, on which an interest of Rs 65,58,012 would be earned at the rate of 7.1 percent per annum. At the same time, the maturity amount would have been Rs 1,03,08,012 by then. The maturity of the PPF account is 15 years. If this account is to be extended for 15 years, then this account can be extended for the next five years.
Get the benefit of tax exemption
PPF is a scheme of the central government. This is the reason why it guarantees low risk along with better returns. Along with this, they also get the benefit of tax exemption under section 80C of the Income Tax Act.