The Public Provident Fund (PPF) scheme has always been a reliable and popular savings option for Indian investors. This scheme is directly administered by the central government, giving investors the confidence that their money is completely safe. Currently, a PPF account offers an annual interest rate of 7.1%, which is quite impressive compared to other savings options. The biggest advantage of this scheme is that your money remains safe for the long term, and you can accumulate a large sum by making regular small investments.

How much to invest?

The minimum deposit amount in a PPF account is only ₹500, and the maximum annual deposit amount can be up to ₹1.50 lakh. You can make a lump sum annual deposit or split it into 12 installments. If you are making installments, even small installments of ₹50 are accepted. This flexibility is what makes PPF so popular among the general public.

Total Funds for a 5,000 Investment

You can open a PPF account at any bank or your nearest post office. For example, if you deposit 5,000 rupees every month into a PPF account, your annual investment will be 60,000 rupees. Thus, at maturity in 15 years, your total corpus could reach approximately 16,27,284 rupees, which includes your original investment of 9,00,000 rupees and interest of 7,27,284 rupees.

Extend for 5 Years
The biggest attraction of the PPF scheme is that it is not only a savings vehicle but also a safe long-term investment. After maturity in 15 years, you can extend it for another 5 years by filling out a form. However, you cannot withdraw the money deposited in this account within 5 years. However, funds can be withdrawn before the term only in certain circumstances, such as serious illness or children's education.

Furthermore, a loan facility is also available with a PPF account. This means that if you suddenly need money, you can use a portion of your account as a loan. It's worth noting that if you don't deposit a minimum of ₹500 in a year, your account may become inactive, but it can be reactivated with a penalty.

Why It's the Best
This PPF scheme is considered ideal for long-term investment. It not only provides a means to preserve money but also offers the opportunity to build a substantial corpus through regular investments. Yes, it's a convenient, safe, and government-backed option for small investors. Regular investment not only increases your savings but also lays a strong foundation for financial security for the future.

If you want to strengthen your financial future and accumulate a substantial amount of money without risk, opening a PPF account is the right choice for you. Whether you make small monthly deposits or a lump sum annually, the flexibility and security of the PPF scheme make it a highly trusted choice among investors in India.

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