The Public Provident Fund (PPF) is one of the secure long-term investment plans in India which can give you mind-blowing figures like ₹65,58,015 after years, and here is how you can reach this financial target using a PPF account.
PPF Investment In Near-Misguided Long View
PPF is a real government guaranteed savings scheme provided with tax-free returns and also a declared interest rate. Interest rate under PPF is set by the government quarterly, which is set at 7.1% per annum for the year 2024.
- Minimum deposit: ₹500 per year
- Maximum deposit: ₹1.5 lakh per year
- Lock-in Period: 15 years (with an option to extend in blocks of 5 years)
- Tax Benefits: EEE (Exempt-Exempt-Exempt) status under Section 80C
How To Make ₹65,58,015 In PPF
This mind-boggling amount exists only if you keep investing ₹1.5 lakh every year for 30 long years (i.e. ₹12,500 per month). Compounding works in your favor:
Step-by-Step Calculation
| Investment Duration | Total Investment (₹1.5 Lakh/Year) | Estimated Maturity Amount (at 7.1% Interest) |
|---|---|---|
| 15 Years | ₹22,50,000 | ₹40,68,209 |
| 20 Years | ₹30,00,000 | ₹66,58,288 |
| 25 Years | ₹37,50,000 | ₹1,03,08,015 |
| 30 Years | ₹45,00,000 | ₹1,48,75,779 |
From the incomes accrued, as seen in the table, in case you happen to invest for 25 years, it would turn out to be over ₹1 crore, and after a long 30 years you can almost see ₹1.5 crores. But the maturity amount would be around ₨65,58,015 if you withdraw after 27-28 years.
Excellent Tips To Get Maximum Return from PPF
- Invest max ₹1.5 lakh in a year to maximize your returns.
- Deposit before 5th of every month to profit from that month’s interest.
- Extend the PPF after 15 years in blocks of 5 years for increased returns.
- Don’t withdraw early: compounding interest is for you.
Conclusion
It seems you really have great chances of building wealth through PPF when you keep investing and remain committed for the long 25 to 30 years. They pay back this tax-free maturity amount: another sound reason for labeling the PPF as one of the best long-term investment programs in India. Start early, stay invested, recline, and think secure financial future!
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