PPF Scheme Calculation: By investing in this Post Office scheme, investors can earn substantial profits. Under this plan, one can receive approximately ₹18 lakhs solely in interest earnings, and the returns are entirely tax-free.

Post Office Investment Scheme: Indian investors are constantly on the lookout for investment options that offer both security for their capital and superior returns. This is precisely why several Post Office schemes enjoy immense popularity among investors.

Post Office schemes offer the opportunity to earn attractive profits alongside the assurance of security. By investing in the Post Office’s PPF (Public Provident Fund) scheme, you can earn over ₹18 lakhs purely through interest—earnings that also come with significant tax benefits. Let’s take a closer look at the detailed calculation behind this.

Benefits of the Public Provident Fund (PPF)

• Currently, the PPF offers an annual interest rate of approximately 7.1%. Furthermore, the interest accrued on this investment is completely tax-free, ensuring that your earnings remain fully protected.
• A key highlight of this scheme is that the entire lump sum received upon maturity is also exempt from taxation. For this reason, it is considered an excellent investment option for the long term.
• You are required to invest in this scheme for a period of 15 years. If you wish, you can extend the investment tenure in blocks of five years at a time, thereby allowing your investment corpus to grow even larger.

How ​​to Earn ₹18 Lakhs in Interest through PPF

• If an investor deposits ₹1.5 lakhs annually into their PPF account, the total principal amount invested over a 15-year period will amount to approximately ₹22,50,000.
• This investment continues to accrue interest at a rate of 7.1%, causing the total corpus to grow to approximately ₹40,68,209 by the time it reaches maturity.
• This means that you receive approximately ₹18,18,209 solely in the form of interest earnings. Consequently, the PPF remains an extremely popular choice among investors seeking long-term investment opportunities. You Can Start Investing with as Little as ₹500

You can start investing in a PPF with a minimum amount of just ₹500. This means that your investment journey can be initiated even with a modest sum.
In a single financial year, a maximum of up to ₹1.5 lakh can be deposited into this account.
Anyone can invest in this government-backed scheme. However, the facility for opening a joint account is not available. Children, too, can open a PPF account, though they will require the assistance of their parents to do so.