How to get a return above Rs 18 Lakh with monthly investments of Rs 1,000

PPF Investment Calculator: The Public Provident Fund or PPF is one of the most popular long-term investment options in the country today. It is one of the most popular forms of savings among all Indian citizens who are looking for a secure option that guarantees them stable and attractive returns. If an investor regularly invests in this program in a disciplined way, he can accumulate a lot of wealth through the PPF in a few years. The Public Provident Fund, or PPF, is a small government-backed high-yield savings scheme designed to create long-term wealth for investors after retirement. The PPF also acts as a non-taxable means of investment.

PPF Features, Interest Rates, Benefits Explained

Investors can invest as little 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 highest interest-paying risk-free schemes in India. The PPF interest rate is currently 7.1%, well above that of bank FDs. The PPF is also one of the very few EEA schemes, where the investment, interest and corpus are completely exempt from tax.

Investors can invest their money in their PPF account for up to 15 years in a row, according to the guideline. However, if one does not need the money after 15 years, he can extend the term 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 more than Rs 18 lakh in a few years

If you invest Rs 33 per day in your PPF account, the monthly investment value amounts to around Rs 1,000. This means that per year, you invest just under Rs 12,000, exactly Rs 11,988, in your Public Provident Fund account. If you continue to do so from the age of 25 until the age of 60, i.e. for 35 years, the amount you will get at maturity will be Rs 18.14 lakh at the time of your retirement. This amount will be completely tax free and the total interest earned will be almost 14 lakh. The total amount you would have deposited in 25 years will turn out to be Rs 4.19 lakh.

However, if you can’t invest such a sum, you don’t have to. The public provident fund is flexible in nature in terms of investment as individuals can invest as little as Rs 500 per annum in their accounts for an entire year. PPF accounts can be opened online or one can also visit their banks to create the account.

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