New Delhi: PPF investment is a prudent move for young and seasoned investors alike since it offers no-fuss government-backed fixed returns on investment. More importantly, PPF offers tax benefits, which can be a strong incentive to instil the habit of fixed savings in investors.
As of date, PPF offers a 7.1 per cent interest on investments. PPF accounts can be opened for as little as Rs 500 and must receive equivalent minimum investments every year to prevent the scheme from turning dormant. PPF has a 15-year maturity timeline. One can invest up to Rs 1.50 lakh per annum in this scheme, which will be completely tax-free.
PPF investments are exempted on deposits, interests and maturity. From October 1, 2024, PPF rules will change for minor and NRI investments. Multiple PPF accountholders will also witness some changes to their holdings with effect from October 1, 2024.
PPF returns on Rs 2,500 monthly investment
If you invest Rs 2,500 per month in PPF, it amounts to Rs 30,000 per annum. Over a 15-year period, this amount will total up to Rs 4.50 lakh. At a 7.1 per cent interest rate, the amount will earn an interest of Rs 3,63,642. THe total amount accrued to your account at the end of the 15-year tenure will be approximately RS 8,13,642.
PPF interest earned on Rs 5,000 per month investment
If you invest Rs 5,000 per month in PPF, your annual contribution will be worth Rs 60,000. In 15 years, that amount will total Rs 9 lakh. At 7.1 per cent, the interest earned on the amount will be equivalent to Rs 7,27,284. The total maturity value will be approximately Rs 16,27,284.
PPF returns on Rs 10,000 per month investments
If you invest Rs 10,000 per month for a year, your investment will equal Rs 1,20,000 per annum. This investment will amount to Rs 18 lakh at the end of 15 years. At 7,1 per cent, the interest earned on this amount will equal Rs 14,54,567. The maturity value will be equal to Rs 32,54,567.
Personal Provident Fund is a government backed small savings scheme with guaranteed returns. PPF interest rates are revised by the government on a quarterly basis. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
