PPF Investment: Invest as little as Rs 1,000 to get over Rs 18 lakh, here’s how

New Delhi: The Public Provident Fund, or PPF, is currently one of the most popular long-term investing options in the country. It is one of the most popular types of savings among all Indian citizens looking for a secure choice that provides consistent and appealing returns. If an investor invests in this programme on a regular and disciplined basis, he or she can amass a substantial amount of wealth through PPF in a couple of years. The Public Provident Fund, or PPF, is a government-backed, high-yielding, small-savings scheme designed to provide investors with long-term prosperity after retirement. PPF is also a tax-free investment vehicle. 

PPF accounts allow investors to contribute as little as Rs 500 per year and as much as Rs 1.5 lakh per year. The Public Provident Fund, or PPF, is one of India's highest interest-paying risk-free programmes. PPF interest rates are currently 7.1%, which is significantly higher than bank FD interest rates. PPF is also one of the few EEE programmes in which the investment, interest, and corpus are all tax-free. 

According to the guidelines, investors can invest in their PPF account for up to 15 years in a succession. However, if the money is not needed at the end of 15 years, the PPF account can be extended for as many years as needed. This can be done in five-year increments by filing a PPF Account Extension Form. 

If you put Rs 33 in your PPF account every day, your monthly investment will be roughly Rs 1,000. This indicates that you invest a bit less than Rs 12,000, or exactly Rs 11,988, in your Public Provident Fund account each year. If you continue to do this from the age of 25 to the age of 60, or for 35 years, the amount you will receive at maturity may be as much as Rs 18.14 lakh at the time of your retirement. This amount is completely tax-free, and the total interest earned will be close to 14 lakh. The total money you would have deposited over a period of 25 years would be Rs 4.19 lakh. 

However, if you are unable to invest such a large sum, you are not required to. Individuals can invest as little as Rs 500 per year into their accounts in a calendar year through the Public Provident Fund. PPF accounts can be opened online or by visiting their local bank.