Highlights
Invest minimum Rs 500 per annum.
Maximum limit of Rs 1.5 lakh per annum.
New Delhi: The Public Provident Fund (PPF) Scheme, introduced by the National Savings Organization in 1968 was aimed at making small savings a lucrative investment option. If you choose your tenure wisely, PPF in the long term will yield very good returns.
Public Provident Fund currently offers an interest rate of 7.1 percent. A minimum of Rs 500 and a maximum of Rs 1.5 lakh per annum can be deposited every year in a PPF account at present. Deposits can be done maximum in 12 transactions.
The key to reaping a good return lies in starting saving from an early stage and carry it in a disciplined manner. If you invest even Rs 1,000 a month in Public Provident Fund , it will give you lakhs of rupees in return in the long term. Here is an assumptive calculation on how you can get over Rs 26 by investing a small amount of Rs 1000 per month in PPF.