This government scheme is amazing, promising guaranteed returns and a millionaire status; the benefits are numerous.

Public Provident Fund: If you want substantial, guaranteed returns over the long term, PPF could be an excellent savings scheme for you. Investing in it also offers tax benefits.

Public Provident Fund: PPF, or Post Office Public Provident Fund, is a long-term savings scheme offered by the government. It offers guaranteed returns and tax benefits under Section 80C of the Income Tax Act, 1961. The entire maturity amount is tax-free. This is a government scheme that offers guaranteed returns over the long term. Let's find out how much you can earn in 18 years by investing ₹5,000-₹10,000 per month so you can start financial planning now to secure your future.

Who can invest in PPF?

Anyone can invest in a PPF—salary class, business owners, or pensioners—can open a PPF account. In the case of a minor, a parent or legal guardian can open a PPF account. In the absence of a parent, grandparents can act as legal guardians to initiate PPF investments in the name of their grandchildren. Overall, any resident of India can invest in PPF. Non-Resident Indians (NRIs) cannot open a PPF account.

How much should one start investing with?

The minimum investment amount in PPF is ₹500, meaning you can open a PPF account by depositing ₹500. The maximum investment amount is ₹1.5 lakh. The lock-in period is 15 years, after which you can extend it in unlimited blocks of 5 years each.

Upon maturity, fill out the account closure form and submit it with your passbook to withdraw your share. If you wish, you can leave the maturity amount in your account and earn interest on it. You are allowed to withdraw from your PF account once a year. In case of emergency, you can withdraw up to 50% of the balance at the end of every fourth year.

Now let's find out how much you will have if you deposit Rs. 5,000, Rs. 7,000, or Rs. 10,000 every month in your PF account for a period of 18 years. Here, we are calculating based on a 7.1% interest rate.

How much will you earn on an investment of Rs. 5,000?

Investing Rs. 5,000 for 12 months means Rs. 60,000 is deposited in your PF account annually. In 18 years, the investment amount will be ₹10,80,000, while the interest earned on it will be ₹11,25,878. This means your maturity amount will be ₹22,05,878.

How much will you save on an investment of ₹7,000?

Investing ₹7,000 in your PF account every month will result in an annual investment (7000 x 12) of ₹84,000. This means that in 18 years, your investment amount in your PF account will be ₹15,12,000, while the interest earned on it will be ₹15,76,230. Accordingly, the estimated maturity amount will be ₹30,88,230.

How much will you get on an investment of ₹10,000?

If you consistently deposit Rs 10,000 into your PF account every month, your annual investment will be Rs 1,20,000 (10,000 x 12). Thus, in 18 years, your deposit will grow to Rs 21,60,000, earning Rs 22,51,757 in interest. This means you will receive Rs 4,411,757 upon maturity.