Best Investment Plan In India 2021: PPF, Invest Rs 12,000 Monthly For 15 Years to Accumulate Rs 1.09 Crores at the Maturity.
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| Best Investment Plan In India 2021 |
Public Provident Fund (PPF) is one of the right investment option to grow your savings. This saving option can returns you in terms of Crores.
Public Provident Fund is one of the most common and trusted investment plans among Indians. It pays Interest rate annually on the compounded amount and it requires a minimum investment amount of Rs 500 annually and maximum upto Rs 150,000. If anyone invest Rs 12,000 every month in a PPF account for 15 years then at the end of the 15th year, the investment amount will grow to Rs 39,05480.85 calculated with interest of 7.1%. It has the maturity life of 15 years with partial withdrawals allowed after 5 years of investment for different purposes. The investment pays a high and steady rate of interest as per Government of India from time to time. But PPF interest rate is decided by Government every quarterly. At present, PPF interest rate is 7.1% offers by Government on an annual compounding basis.
It also helps you to save tax every year under Section 80C of the Income Tax Act 1961. If one invest Rs 1,50,000 it may gives huge tax benefit.
The best features available with this investment is the PPF account holder uses extension benefit for a block of 5 years three times without any contribution for the next 15 years, then the amount will grow to Rs 1.09 crores. As your PPF account will keep on accumulating interest every year for the next 15 years, due to this compounding your investment turn into a bigger amount without any contribution I.e to Rs 1.09 cores.
But here if PPF account holder contribute Rs 12,000 every year in the extension period till the end 15 years, then your your PPF account balance will grow to Rs 1.48 crores assuming the present interest rate of 7.1% will continue till the end of extension period. But keep in mind that if interest rate change then the maturity amount will change accordingly.
Where to open PPF account ?
You have so many options to open the PPF account, this is best investment scheme and with this scheme you can save huge tax every year under section 80C of the Income Tax Act 1961.
In our country one can open PPF account in Post Office and almost all Public and Private sector banks in India.
The list of banks are mentioned at below in which you can open PPF account:
- State Bank of India (SBI) and all SBI associate banks.
- ICICI Bank
- HDFC Bank
- Axis Bank
- Canara Bank
- Bank of Baroda
- Central Bank of India
- IDBI Bank
- Bank of India
- Union Bank of India
- Indian Bank
- Corporation Bank
- Vijay Bank
- Oriental Bank of Commerce
- Punjab National Bank
- United Bank of India
- Dena Bank
- Allahabad Bank
- Bank of Maharashtra
- Indian Overseas Bank
These are all banks which providing Public Provident Fund (PPF) account open facilities, but keep in mind that all the branches of bank are not authorized to open PPF account, So check details with the bank before you proceed to open the account.