PPF investment News

An investor can amass a corpus of more than Rs 1 crore by making monthly investments of Rs 12,500 or Rs 1.5 lakh per year in PPF. The minimum and maximum investments for each fiscal year are 500 and Rs 1.5 lakh, respectively. The scheme's current annual interest rate is 7.1 percent, and the maturity period is 15 years.

One of the most significant benefits of the PPF is that it provides a guaranteed tax-free return. PPF rules provide that an annual investment of up to Rs 1.5 lakh qualifies for a tax credit under Section 80C of the Income Tax Act 1961. PPF will yield a 7.1 percent return in the current quarter.

An investor can save an amount as big as Rs 1 crore but for that one needs to understand the timing of investment, whether lump-sum investment or monthly investment is more beneficial, and how the interest will be calculated on your deposits. On a monthly basis, the interest on PPF balance is calculated and it is credited to the account of the subscriber-only at the end of the financial year (March 31). If you think of reaching the target of Rs 1 crore through PPF, you should consider depositing money in the account before the 5th day of a month.

Here is the link of PPF calculator from which you can calculate returns on your PPF investment online.

Here are five facts you must know about PPF account so that you can make the most of this saving scheme.