PPF Investment Calculator: The Public Provident Fund or PPF is one of the most popular, long term investment options in the country at present. It is is one of the most popular forms of savings among all Indian citizens who look for a safe option that guarantees them steady and attractive returns. If an investor invests in this scheme regularly in a disciplined manner, he or she can accumulate a lot of wealth through PPF in a matter of some years. The Public Provident Fund, or PPF is a government backed, high yielding, small savings scheme meant to create long term wealth for investors post retirement. PPF also acts as a tax free means of investment.
PPF Features, Interest Rate, Benefits Explained
Investors can invest as low as Rs 500 per year, and as high as Rs 1.5 lakh per year, in their PPF accounts. The Public Provident Fund, or PPF is one of the most highest rates of interest-paying risk-free schemes in India. PPF interest rate is 7.1 per cent at the moment, far higher than bank FDs. PPF is also one of the very few EEE schemes, where the investment, interest and the corpus is totally tax free.
Investors can invest their money in their PPF account for as many as 15 years in a row, as per the guideline. However, if one does not need the money at the end of 15 years, he or she can can extend the tenure of the PPF account for as many years as needed. This can be done in blocks of five years by submitting a PPF Account Extension Form.
Deposit Rs 1,000 in a Day, Get Over Rs 18 lakh in Some Years
If you invest Rs 33 a day in your PPF account, the monthly investment value comes to around Rs 1,000. This means that per year, you are investing a little less than Rs 12,000, exactly Rs 11,988, in your Public Provident Fund account. If you keep doing this from the age of 25 up to the age of 60, that is for 35 years, the amount that you will get during maturity will be as much as Rs 18.14 lakh at the time of your retirement. This amount will be totally tax free and the total interest earned will be nearly 14 lakh. The total amount you would have deposited in 25 years will turn out to be Rs 4.19 lakh.
However, if you cannot invest such a huge amount, there is no necessity that you have to. Public Provident Fund is flexible in nature in terms of investment as individuals can invest as low as Rs 500 per year into their accounts in a whole year. PPF accounts can be opened online or one can also visit their banks to set up the account.