Public Provident Fund (PPF) investment: What is the best instrument to invest one’s hard-earned money? The answer to this question may vary from person to person. But if you are looking for an option that won’t put your money at much risk, PPF may be an option. The subject matter of this article – Public Provident Fund – comes across as one of the safest investment avenues sans market risks and with triple tax benefits. You can invest up to Rs 1.5 lakh per year in PPF for 15 years to accumulate a huge lump sum and enjoy freedom from tax on the invested amount, interest earned and the amount withdrawn on maturity.
You can make a monthly investment in PPF or once in a financial year. Currently, the interest rate offered on PPF is 7.9 percent and this is revised by the central government on a quarterly basis. You will be surprised to know that by saving small amounts daily to invest in PPF account at the end of the month, or once in a year, you can accumulate a big lump sum. Take a look:
By saving Rs 200/day, you can save at least Rs 6000 in a month and Rs 72,000 in a year. Investing Rs 72,000 per year in PPF for 15 years can give you over Rs 21 lakh at the current rate of interest.
By saving Rs 333/day, you can save at least Rs 9990 in a month and Rs 1,19,880 in a year. Investing Rs 1,19,880 per year in PPF for 15 years can give you over Rs 35 lakh at the current rate of interest.
PPF account can be opened at the Post Office or leading commercial banks. Lenders like HDBC Bank also provides online PPF account opening facility.