New Delhi, Nov, 17: If you are looking to invest your hard-earned money and get guaranteed great returns, then this central government scheme is just for you. This special investment scheme by the central government of India offers the opportunity to make a huge amount of Rs 1 crore on maturity by investing only Rs 12500 monthly.
This government investment scheme that gives guaranteed returns is called the Public Provident Fund. The PPF is one of the best investment options in India with a minimum investment amount of as low as Rs 500.
While you can become a PPF investor for as low as Rs 500, you can also invest up to a maximum of Rs 12,500 every month or Rs 1.5 lakh per year. This investment scheme offers great interest rates with a maturity period of 15 years, which can be extended for another 5 years to maximise returns.
The scheme can be availed simply be going to a public bank or your nearby post office.
Great Interest rate and returns
Under PPF, investors are currently getting a great 7.1% annual rate of interest. Under the scheme, the government starts payments of interest every month after March in each year.
Furthermore, investors in this government scheme also enjoy the benefit of income tax exemption under section 80C.
Invest Rs 12500 per month and get Rs 1 crore on maturity
Making a crore out of your total investment in the scheme requires you to hold your PPF account for a minimum period of 25 years. While a PPF account matures at 15 years, it is not mandatory to close it at that time. A person can extend the invest indefinitely in blocks of 5 years.
In this time, your total investment, at Rs 12,500 per month, will stand at Rs 37,50,000. However, your total earnings, the investment combined with an interest of Rs 65,58,012 at 7.1% per annum, will be Rs 1,03,08,012 at the end of 25 years.
After the standard maturity period of 15 years ends. However, this can be done only twice. This scheme can also be started by parents by opening PPF accounts for children on their behalf.(DNA)