In today’s time, in this era of inflation, everyone wants to save some money from their income and invest it in a place where they get good returns and their money is safe. In this case, the government has started the PPF scheme, in which along with getting more than 7 percent return, the government is also guaranteeing the safety of your investment. You can save Rs 100 every day and raise Rs 10 lakh through this government scheme.
About PPF Scheme
There are many schemes available in the market for investment, which are offering great returns. But there is also a lot of risk in it. But there is no chance of risk in PPF investment, rather the government keeps your investment safe. This account will remain safe for 15 years, if the investor wants, he can extend it further. Apart from this, another benefit makes it popular as the best option.
Investment to open an account
To open an account in this government scheme, you can invest Rs 500 annually and can deposit a maximum of Rs 1.50 lakh in a year. The interest rate in this scheme is 7.1%. Changes are made by the government. By investing in this scheme, you can get more interest than fixed deposits through many banks.
How to get 10 lakh rupees
If you save and invest Rs 100 daily in PPF scheme, you can accumulate a fund of Rs 10 lakh in 15 years. By saving Rs 100 daily, you will save Rs 3000 per month. If you invest this Rs 3000 in PPF scheme, you will invest Rs 36,000 in the scheme in a year. By investing in this way for 15 years, you will accumulate a fund of Rs 5.40 lakh. In 5 years, you will get Rs 4,36,370 as interest. In this way, by investing Rs 5.40 lakh in 15 years, you will accumulate a fund of Rs 9,76,370.
How to open a PPF account
PPF account can be opened in post office or any nationalized bank like State Bank of India or Punjab National Bank etc. Necessary documents have to be submitted to open the account like duly filled account opening application form, KYC documents like Aadhaar, Voter ID card, Driving License, Proof of Residential Address, Nominee Declaration Form, Passport size photo etc. You can open this account in some private banks like ICICI, HDFC and Axis Bank are also authorized to provide this facility.
Benefits of opening a PPF account
- PPF is a safe savings scheme and investing in it gives guaranteed returns. If you have such a loan and are unable to repay it, then it cannot be foreclosed by any court order.
- PPF account also matures after 15 years. This long period gives the benefit of compound interest.
- This scheme is backed by the Government of India. So it is completely risk-free.
Also read : Post Office Time Deposit Scheme 2024, Benefits, Features, Documents, Apply Online-Offline
- There is more flexibility in investing in PPF.
- PPF account can be opened with a minimum of Rs 100.
- By investing in PPF, money can be saved for retirement.
- PPF account can be opened in any bank or post office.
Eligibility Criteria for Opening a PPF Account
- To open a Public Provident Fund account, one must be an Indian citizen.
- You must be 18 years of age or older.
- You can open only one PPF account in your name. However, you can open a second account in the name of a minor.
- Non-Resident Indians and Hindu Undivided Families (HUFs) are not allowed to open PPF account, if any account is there in their name then it will remain active till its expiry date.