Public Provident Fund (PPF) is considered the safest to invest. It is one of the most interest paying schemes in the country. Income tax exemption is also available for investment in PPF. Therefore, it is the people’s choice for investment. If you invest 1000 rupees per month in PPF, then it reaches lakhs of rupees. You can save big money for your future by investing in it.
Let us tell you how you can make a hefty amount of 26 lakhs with a small investment of 1000 rupees per month in PPF.
The first investment in PPF is for 15 years. Now if you continue to deposit 1000 rupees every month for 15 years, then this amount will be 1.80 lakhs in total. Now, on this amount, you will get 1.45 lakh according to the interest of 7.1 percent. In this way, after 15 years, you will get 3.25 lakh rupees.
Now if you continue that scheme for five years even after 15 years and continue to deposit 1000 rupees per month, then after five years, the amount of Rs 3.25 lakhs will increase to Rs 5.32 lakhs.
After the completion of five years, if you increase it further by five years, then your amount in PPF account will increase to Rs 8.24 lakhs.
Similarly, once again if you carry it forward for five years and keep depositing one thousand rupees every month, then this amount will increase to 12.36 lakh rupees. However, the investment period will reach 30 years.
If you increase this PPF account for 5 years after 30 years. If you keep depositing 1000 rupees per month, then after next five years this amount will increase to Rs 18.15 lakh in your account.
After 35 years, if you increase it again for five years, then the investment period will be 40 years. In this case, the money in your PPF account will increase to Rs 26.32 lakh after the next 5 years.
Now if you assume that you started a job at the age of 20 and started investing 1000 rupees. So when you reach retirement at the age of 60 years, there will be more than 26 lakh rupees in your PPF account.