Winning Bizness Desk
Mumbai. Although there are many investment instruments available for long term investment, but Public Provident Fund (PPF) is unmatchable. To meet your long term goals and increase your savings, the Public Provident Fund scheme of the post office is proving to be the best for everyone. This scheme not only gives a safe savings option, but you can also become a millionaire by saving in it. Currently it is getting 7.1% interest. PPF account can be opened with as little as Rs 500 only. Any person can open this account in his name in any post office or bank. Apart from this, the account can also be opened by any other person on behalf of the minor. You can deposit up to a maximum of Rs 1.5 lakh annually in your PPF account. If you want to become a millionaire through PPF savings, then you have to deposit Rs 12,500 every month for 25 years. In this, at the current interest rate of 7.1% per annum, you can get a maturity amount of Rs 1.03 crore by depositing a total of Rs 37.50 lakh with an interest of Rs 65.58 lakh.
PPF account matures in 15 years
If you deposit Rs 12,500 in your PPF account every month, you will get a total of Rs 40.68 lakh on maturity. PPF account matures in 15 years. However, after maturity, you can also extend it for 5-5 years. That is, you can invest in this scheme for a total of 25 years. You can withdraw your money from it after 15, 20 or 25 years. However, you cannot withdraw your money for the next 5 years from the year of opening the PPF account. After completion of 5 years money can be withdrawn by filling Form 2. However, if you withdraw money before 15 years, you will have to pay a penalty of 1%.
Totally tax free and risk free
PPF comes under the category of EEE, which means you get tax exemption on the entire amount deposited in the scheme. Also, there is no tax on the interest and maturity amount received from the investment. The rate of interest available on PPF investment is revised every three months. PPF money cannot be confiscated or recovered in the form of any penalty or liability.
