In this scheme guaranteed by the central government, you can make your thousand rupees into lakhs. With this, another advantage is the exemption of income tax on interest.
New Delhi. If you are also making the best investment plan, then Public Provident Fund (PPF) can be the best option for you. It is considered the safest for investment. In addition, it also gives good returns. In this scheme guaranteed by the central government, you can make your thousands of rupees into lakhs with the right strategy. With this, another advantage is the exemption of income tax on interest. There is no tax (tax) on the maturity amount in PPF.
You will get an interest of 7.1 percent,
if you invest in PPF now, you can get an interest rate of 7.1 percent. This rate is for the period till 30 September. It has a maturity period of 15 years and after that the investor can withdraw the amount or choose to continue with the investment. After maturity, the investment can be extended for a period of five years.
Rs 1,000 will become Rs 18 lakh
if you deposit Rs 1,000 thousand every month in PPF, then in 15 years you will have about Rs 3.25 lakh deposited. This amount is fixed on the assumption of no change in the interest rate during the tenure of your investment. Out of this Rs 3.25 lakhs, about Rs 1.80 lakhs is the investment made on your behalf and about Rs 1.45 lakhs is the interest earned on your fund during 15 years.
If you extend it for five years after maturity, you can get Rs 5.32 lakh.
After this, if you extend this investment for another five years, you will get about Rs 8.24 lakh. Similarly, if you keep increasing your investments for five years, it will help you get closer to your goal. If you proceed like this from the beginning of investing in PPF, then in about 35 years you will be able to save Rs 18 lakh.
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