PPF Calculator: Earn Rs 27 lakh by investing just Rs 1 lakh per annum | Know calculations

What is PPF?

Public Provident Fund (PPF) is a government savings scheme that entices individuals with its fixed and tax-free interest rate, making it a preferred option for those seeking a secure investment coupled with income tax benefits.

One notable feature of this scheme is its allowance for partial withdrawals as well as the loan against the PPF balance, subject to specific conditions.

Currently, the scheme offers a 7.1% interest rate.

With the PPF scheme, an individual can accumulate a fund of approximately Rs 27 lakh.

Want to know how? Check here for the complete calculation

To achieve this, one needs to invest Rs 1 lakh annually for 15 years, earning interest at a rate of 7.1%.

After 15 years, on the maturity of the PPF account, the total investment sums up to Rs 15 lakh.

And the accrued interest on this investment amounts to Rs 12,12,139.

Consequently, upon withdrawal, one can obtain more than Rs 27 lakh, considering the investment amount of Rs 15 lakh and the interest amount of Rs 12,12,139.

That means that by investing in PPF, an individual can yield a total maturity amount of Rs 27,12,139 after 15 years.