Looking For A Safe & Profitable Investment? Try PPF, Earn ₹6 Lakh Return On ₹7.5 Lakh Investment

Mumbai: If you're searching for an investment option where your money stays safe and gives good returns, this government scheme might be perfect for you. We're talking about the Public Provident Fund (PPF) - a long-term, risk-free investment plan backed by the government.

What is PPF Scheme?

PPF (Public Provident Fund) is a savings scheme offered by India Post and banks. It is a government-guaranteed scheme, making it one of the safest options for investors. The scheme has a 15-year maturity period, and you are required to deposit money every year during this time.

You can start investing with as little as Rs 500 per year, while the maximum yearly investment limit is Rs 1.5 lakh. The current interest rate is 7.1% per annum, which is much higher than regular savings accounts or fixed deposits. After 15 years, you can also extend your account twice, each time by 5 years.

How Rs 7.5 Lakh Becomes Rs 13.56 Lakh

Let’s take a simple example. If you invest Rs 50,000 every year for 15 years, your total investment will be Rs 7.5 lakh. At 7.1% annual interest (compounded yearly), you will receive Rs 13,56,070 on maturity. That’s a profit of Rs 6,06,070, and all of it is tax-free under Section 80C of the Income Tax Act.

How to Start Investing in PPF?

Starting a PPF account is very easy. You can open it at any bank branch or your nearest post office. Just carry your basic ID proof, a photo, and initial deposit money. You can also manage your PPF account online with most banks.