The Post Office Public Provident Fund (PPF) scheme is a scheme that promises high returns on low investment. Let’s know about this scheme in detail and understand how it can be beneficial for you.

Introduction to PPF Scheme

Public Provident Fund is a government savings scheme run by the Indian Postal Department. This scheme gives people an opportunity to make regular savings for a long period and get good returns on it.

Minimum and maximum investment limits

The special thing about this plan is that you can start with a very small amount:

Minimum investment: Rs 500

2. Maximum annual investment: Rs 1.5 lakh

This flexibility makes this plan suitable for all classes of people.

Account opening process

You will need the following documents to open a PPF account:

PAN card

2. Aadhar Card

3. Residence Certificate

4. Photo ID card

With these documents you can open an account by visiting your nearest post office.

Example of Investment and Returns

Let us understand through an example how a small investment can translate into big returns:

Monthly investment: Rs 2,083 (approx)

2. Annual investment: Rs 25,000

3. Investment period: 15 years

4. Total investment amount: Rs 3,75,000

5. Estimated interest: Rs 3,03,035

6. Total amount received: Rs 6,78,035

It is clear from this example that you can earn almost double the interest on your original investment

Safe Investment: This is a government scheme, so it is completely safe.

2. Tax benefits: Investment made in PPF is eligible for tax exemption under Income Tax section 80C.

3. Compound Interest: You get the benefit of compound interest, which makes your wealth grow faster.

4. Flexible Investment: You can invest small or big amount as per your capacity.

5. Long term investment: The long period of 15 years gives your money a chance to grow well.

Who is this plan suitable for?

The PPF scheme is particularly suitable for the following people:

People who are looking for long term investment with low risk.

2. People who want to save small amounts regularly.

3. People who want good returns along with tax savings.

4. Government employees, who want to invest their extra savings in a safe manner.