Public Provident Fund Scheme make you Rich
PPF Scheme: PPF, or Public Provident Fund, is a long-term investment scheme operated by the government. It’s specifically designed for individuals with a low-risk appetite seeking secure returns. Investing in this scheme not only ensures your money is completely safe, but also provides you with an annual interest rate determined by the government. Currently, PPF offers a yearly interest rate of 7.1%.
PPF has a maturity period of 15 years. You can invest a minimum of ₹500 and a maximum of ₹1.5 lakh annually. If an investor invests ₹1.5 lakh annually, they can receive a tax-free corpus of over ₹40 lakh after 15 years. This amount is completely safe as it is not affected by market fluctuations.
PPF is one of the few schemes in India that falls under the EEE (Exempt-Exempt-Exempt) category. This means that the investment is tax-exempt (up to ₹1.5 lakh under Section 80C), the interest is tax-free, and the entire maturity amount is tax-free. This makes it difficult to find a safer tax-saving option than PPF.
