As you might know, Rakshabandhan is just around the corner and that means it’s time to make money from the brothers. But have you figured out what will you do with all the money? Well, you can take this Rakhi festival as a chance to start investing, but where? Public Provident Fund(PPF) might be the best option, where you can start investing with a mere Rs. 500 in hand.
What is Public Provident Fund?
The Public Provident Fund (PPF) scheme is a long-term investment option that offers a decent rate of interest and returns on the invested amount. And the best part? You don’t need to pay any tax on the interest or returns you have availed. Currently, PPF interest rate is set at 7.1 per cent.
PPF calculator
Let’s say you got Rs 2000 as your Rakshabandhan gift and you decided to put that money into PPF. You have to go on investing the same amount for 15 years straight, which means Rs 2000 each year.
After 15 years when your PPF account will mature, you will avail an amount of Rs 54,241. After investing a total amount of Rs 30,000 you will get an additional Rs 24,242 as PPF interest rate 2024. Isn’t it awesome?
Now let’s say you decided to invest Rs 4000 annually in PPF. After 15 years, you will receive a maturity amount of Rs 1,08,484. This means, after your total investment of Rs 60,000 you will get Rs 48,485 as an interest.
PPF Eligibility
– A PPF account can be opened by resident individuals or by a guardian for a minor.
– Joint PPF accounts are not allowed.
– NRIs cannot open a PPF account, but if a resident becomes an NRI during the 15-year term, they can continue the account until it matures on a non-repatriation basis.
– Each person can only open one PPF account and must declare this when opening it.
These small investment amounts can give you an impressive return. Instead of wasting your money on temporary goods investing is far better as they will reward you with some extra money at the end. These investments are safe and reliable as they are controlled by the Government of India, but invest through a reliable medium.
Put your Rakshabandhan money to use, take your first step towards investing through PPF. Start from as low as Rs. 500. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
