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Rs 5,000 PPF investment can get you over Rs 1 crore: A Detailed Calculation

PPF scheme: The Public Provident Fund (PPF) scheme is a lucrative investment opportunity that can help you accumulate substantial wealth in the long run. It provides the security of a government guarantee, attractive returns, and tax-free income. Here’s a breakdown of how you can grow your PPF investment to over Rs 1 crore by depositing […]

Edited By : Divya Richa | Updated: Sep 5, 2023 15:20 IST
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PPF Scheme

PPF scheme: The Public Provident Fund (PPF) scheme is a lucrative investment opportunity that can help you accumulate substantial wealth in the long run. It provides the security of a government guarantee, attractive returns, and tax-free income. Here’s a breakdown of how you can grow your PPF investment to over Rs 1 crore by depositing Rs 5,000 every month.

The Power of PPF for Long-Term Investment

The PPF scheme is renowned for its long-term investment benefits. You can contribute up to Rs 1.5 lakh annually, and your money benefits from compound interest while remaining unaffected by market fluctuations.

How to Reach Rs 42 Lakh

If you consistently invest Rs 5,000 per month in a PPF account, your yearly investment amounts to Rs 60,000. Over 15 years, your maturity amount would reach Rs 16,27,284. However, you can boost your wealth significantly by increasing your monthly deposits at specific intervals.

For instance, if you increase your monthly deposit to Rs 10,000 after 15 years, your total investment will be Rs 15,12,500, and your interest income will grow to Rs 26,45,066. After 25 years, your total fund will be approximately Rs 42 lakhs (Rs 41,57,566).

If you opt for a more aggressive approach and deposit Rs 12,500 every month, you can even amass Rs 1 crore after 25 years.

Opening a PPF Account

To start your PPF journey, you need a minimum initial investment of Rs 500. You can easily open a PPF account at your nearest post office or bank. As of January 1, 2023, the government offers an attractive interest rate of 7.1 per cent for this scheme, and the maturity period is set at 15 years. You also have the option to extend your account in five-year blocks and decide whether to continue making contributions. Additionally, after five years, you can apply for a loan against your PPF account.

Investing in a PPF scheme is a smart choice for long-term financial security. With disciplined contributions, you can watch your wealth grow and achieve your financial goals, whether it’s Rs 42 lakhs or even Rs 1 crore.

First published on: Sep 05, 2023 03:20 PM IST

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