PPF Scheme: You also receive various facilities with a PPF account. Additionally, you can easily obtain a loan against a PPF account.
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PPF Scheme: The PPF—or Public Provident Fund—is a savings scheme administered by the Central Government. This scheme has been in existence for a long time and remains highly popular among the general public. Currently, the PPF scheme offers an annual interest rate of 7.1 percent. Today, we will learn more about the PPF scheme. Additionally, we will explore the total amount—including interest—that one would receive upon maturity if an annual investment of ₹1 lakh is made into the PPF scheme.
PPF Accounts Can Be Opened at Banks as Well as Post Offices
Under the PPF scheme, one can invest a minimum of ₹500 and a maximum of ₹1.50 lakh in a single year. According to the scheme’s regulations, you are required to deposit at least ₹500 at least once during a financial year. If you fail to deposit at least ₹500 within a year, your account will become dormant. However, it can be reactivated by paying a penalty. For your convenience, you have the option to deposit the entire annual amount as a lump sum or continue your investment through a maximum of 12 installments. A PPF account matures after 15 years. Apart from post offices, a PPF account can also be opened at any bank.
How Much Will You Receive at Maturity If You Deposit ₹1,00,000 Annually in the PPF Scheme?
If you invest ₹1,00,000 annually into your PPF account, then after 15 years—that is, upon maturity—you will receive a total of ₹27,12,139. This total comprises your invested capital of ₹15,00,000 and accrued interest of ₹12,12,139. It is worth noting that a PPF account also comes with various additional benefits. For instance, you can easily avail of a loan against your PPF account. However, you cannot make any withdrawals from the account for a period of 5 years from the date of opening the PPF account. After five years, withdrawals from a PPF account are permitted only under specific circumstances, such as a serious illness or for children’s education.
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