Friends, human life is full of uncertainties, no one knows what will happen to whom, so we should be prepared for the future, especially in financial terms, in such a situation, a part of your earnings should be invested in a place from where good returns are received, then Public Provident Fund (PPF) is one of the most reliable and government-backed schemes for you. It offers guaranteed returns, tax benefits and long-term wealth creation opportunities. Let's know the complete details about it

Attractive interest rate

Currently, the government pays 7.1% interest per annum on PPF deposits.

The interest is compounded annually and is completely tax-free.

Affordable entry point

You can open a PPF account with a minimum deposit of just ₹100.

The minimum annual deposit required is ₹500, making it highly accessible to small savers.

Maximum Investment Limit

You can invest up to ₹1.5 lakh per year in your PPF account.

The deposit can be made in lump sum or in a maximum of 12 installments per financial year.

Long-term lock-in period

PPF has a lock-in period of 15 years, which promotes disciplined long-term savings.

After maturity, the account can be extended in blocks of 5 years without withdrawing the money.

Easy access

PPF accounts can be opened at any major bank or the nearest post office.

Interest earning tip

To get maximum returns, deposit your money before the 5th of every month, as interest is calculated monthly but credited annually.

Triple tax benefit (EEE status)

Exemption at the time of investment (under section 80C).

Interest exemption during the tenure.

Maturity amount exemption on withdrawal.

How you can become a crorepati with PPF

Let's consider an example:

Suppose a person opens a PPF account at the age of 30 and invests ₹1.5 lakh annually. Over a period of 30 years, the total investment would be ₹45 lakh. With compound interest at the current rate of 7.1%, the maturity amount could grow to around ₹1.5 crore.