If you’re looking to build a solid long-term corpus with a safe investment, Public Provident Fund (PPF) is a reliable option. Tax exemptions, guaranteed returns, and government guarantees make it a preferred choice among the middle class. The question is, if you invest ₹2,000, ₹3,000, or ₹5,000 per month, how much will you receive upon maturity in 15 years? This PPF calculation will clarify the situation.
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Let’s first understand the basics of PPF.
PPF accounts are open for 15 years, and the government determines the interest rate. The interest rate is revised every three months. Currently, PPF offers an annual interest rate of 7.1%. The minimum investment amount is ₹500 and the maximum amount is ₹1.5 lakh per year. Most importantly, the investment, interest, and maturity amount are tax-free.
PPF calculation for a monthly investment of ₹2,000
If you invest ₹2,000 per month, or ₹24,000 annually, in PPF, your total investment over 15 years will be approximately ₹3.60 lakh. At 7.1% interest, you will receive a maturity amount of approximately ₹6,50,913 after 15 years.
What will you get if you invest ₹3,000 per month?
Investing ₹3,000 per month, or ₹36,000 annually, will result in a total investment of ₹5.40 lakh over 15 years. After adding interest, you will receive approximately ₹9,76,370 at maturity.
How big a fund can be created by investing ₹5,000 every month?
If you invest ₹5,000 every month, or ₹60,000 annually, in PPF, your total investment will be ₹9 lakh in 15 years. At 7.1% interest, you will receive ₹16,27,284 upon maturity.
Who is Beneficial for Investing in PPF?
PPF is especially suitable for those who are risk-averse. Employed individuals, self-employed individuals, women, and parents can invest in it for their children’s future. It is not affected by market fluctuations, making it a completely safe investment.
Extension Option
If you wish to continue contributing to your PPF after 15 years, you can do so. You must submit an application before maturity. A one-time extension is granted for 5 years. This way, you can continue to extend your PPF contribution in 5-year blocks for as long as you wish and accumulate a substantial amount.
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