Public Provident Fund, or PPF, is considered a better option for long-term investments. In this, there are many types of tax rebates with better returns. Right now, 7.1 percent interest is being given in it.
Public provident fund i.e. PPF account is a better option to add big amount from small savings. This is a popular scheme for long term investment. In this, everything from the interest received on the amount deposited to the deposit amount is tax free. Apart from this, if you open an account in the name of the wife, then there is a more discount.
You can easily invest in a PPF account, whether it is a wife or a housewife or a jobber. Investing in it is considered absolutely safe. It is also an investment with a guaranteed return. In this, up to Rs 1.5 lakh can be deposited on opening an account in the name of the wife.
7.1% getting interest
The current interest rate on PPF is 7.1% per annum. It adds compound interest on an annual basis. The central government reviews the interest rates every three months. Given the large number of people investing in PPF, significant changes in prices are unlikely. No more than 1.5 lakh rupees can be deposited in this account in a year. A person can open only one PPF account. Although in this place you can open an account in place of your child ie minor, but a joint account cannot be opened in it. To keep the account running, a minimum of Rs 500 has to be deposited in a year.
How to make 51 lakh fund
If your wife invests 1.5 lakh rupees every year in PPF. If it is invested for 18 years, then the total deposit will be around 27 lakh rupees. Since, at this time, interest of 7.1 percent is being received in this scheme, in such a situation you will get about 51 lakh rupees on maturity. In this way a large amount of your funds will be collected.
Also read: LIC cautions policy holders! Be vigilant with fake agents, otherwise the account can be empty
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