PPF Calculator: A monthly savings of just Rs 12,500 can create a PPF fund of Rs 41 lakh; here's the calculation...

The decisions taken by President Donald Trump after his ascension to power significantly impacted the global economy. Consequently, public investments were significantly impacted, and the market crash resulted in the loss of ordinary investors' money. If you want to keep your money safe during this period, the PPF is a good investment option. By investing just ₹12,500 per month and ₹1.50 lakh annually, you can accumulate a corpus of ₹41 lakh.

The Public Provident Fund (PPF) is one of the most reliable long-term savings schemes in India. It is especially preferred by working individuals, as it secures their future and retirement. Even though the interest rate has remained relatively constant for many years, the PPF remains attractive because it is completely safe, returns are tax-free, and it offers the benefit of compounding. Market fluctuations make it.

At the current interest rate of 7.1%, if you deposit ₹1.5 lakh every year, your fund grows to ₹40.68 lakh in 15 years. Of this, more than ₹18 lakh will be in the form of interest alone, which is completely tax-free.

Guaranteed Income from Compound Interest
PPF is a long-term savings account run by the Government of India. The interest earned each year is added to the next year's amount, a process known as compounding. Since April 2020, it has been offering 7.1% interest. Its security and complete tax exemption (EEE benefit) make it an ideal option for those looking for a safe investment.

How to Open a PPF Account?
Opening a PPF account is very easy. You can open it at any bank or post office. Any Indian citizen can open a PPF account in their own name or in the name of their minor child. Aadhaar, Voter ID or Driving License (proof of identity), PAN card, address, nominee form, and passport-size photo are required to open an account. According to PPF rules, you can deposit a minimum of ₹500 and a maximum of ₹1.5 lakh per year. You can deposit this amount in one go or in multiple installments. If the interest rate remains at 7.1% and you deposit ₹1.5 lakh every year, you will earn over ₹18 lakh in interest after 15 years.

Complete PPF Investment Calculation
If a person deposits ₹1.5 lakh every year in a PPF account, they will earn interest at a fixed annual rate of 7.1%. The total deposit amount in 15 years will be ₹22,50,000, which, after including interest, will become ₹40,68,209.

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