Invest 1000 monthly in Public Provident Fund; you will get 12 lakhs rupees after maturity

If you are looking for a good investment, and do not want any kind of risk, then Public Provident Fund (PPF) can be a great option for you. There is no risk in investing in PPF. It is fully protected by the government.

Investing for the long term can yield good returns in PPF. By investing Rs.1000 per month, you can earn more than Rs.12 lakhs. The central government changes the interest rate on PPF accounts every quarter. The average interest rate is 7 to 8 percent.

At present, the interest rate on PPF is 7.1 per cent. This was compounded interest annually. It is also higher than the fixed deposit of many banks.

You can invest a minimum of Rs 500 to a maximum of Rs 1.5 lakh per annum in a PPF account. Its maturity period is 15 years. After that you can withdraw this money. Or you can increase it every 5 years.

If you deposit Rs.1000 per month in PPF, it would be Rs.1.80 lakhs in 15 years. The interest was Rs 1.45 lakh. That means you get Rs 3.25 lakh at maturity.

If you extend the term for another 5 years and continue to pay Rs.1000, the total investment will be Rs.2.40 lakhs and you will get interest of Rs.2.92 lakhs. Accordingly, you will get Rs 5.32 lakh at maturity.

If you extend the term for the next fifteen years after maturity of 15 years, the total investment will be Rs 3.60 lakh. You will also get interest of Rs 8.76 lakh on it. Thus, after 30 years, you will get Rs 12.36 lakh.

If you have invested in PPP, you are also offered a loan facility on it. However, you will get the benefit in the third or sixth year of opening the account. After completing six years of PPF account, you can also withdraw some money from it.