If you know how to invest money and handle it the right way, many schemes can make you rich. One such scheme is the Post Office Public Provident Fund (PPF). It is very helpful in building a large corpus of money over a long period. The speciality of the scheme is that the investment is completely safe and won’t be affected by the highs and lows of the market trends. The interest rates of the scheme are fixed by the government and reviewed quarterly. Currently, 7.1 per cent interest is being received on the PPF.
Post Office Public Provident Fund is not a get-rich-quick scheme and hence one of the safest money investment options out there. The investment is a long-term one with zero risk and the account can be opened at any post office of choice. Those who invest in this scheme also get security on their money from the government.
You can open a PPF account at a post office or bank branch. The maturity period of the account is 15 years. But after maturity, the facility can be extended for five years. People can choose to extend their maturity period by five more years at the end of every extension.
If you deposit Rs 12,500 per month in a Post Office Public Provident Fund account and withdraw 5 years later, the total wealth you would be withdrawing will be equal to Rs 40.68 lakh. Your total investment in this will be Rs 22.50 lakh, while Rs 18.18 lakh will be your returns. The calculation has been done based on the assumption that the rate of interest is 7.1 per cent per annum. The maturity amount may change depending on the rate of interest.
The least maturity period is 15 years and the maximum is 25 years. This means that one can leave their investment in the Post Office Public Provident Fund account for 25 years including two five-year extensions and the return on investment at the end of this long period would be a staggering Rs 1.03 crore. The investment would amount to Rs 37.5 lakh and the returns would enable you to earn another Rs 65.58 lakh.
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