PPF Scheme: Invest Rs 5,000 Monthly and Secure Rs 42 Lakhs – Here’s How

For those considering or already investing in the Public Provident Fund (PPF) scheme, there’s fantastic news.

By contributing to the PPF scheme, you have the potential to amass a fund exceeding Rs 1 crore.

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Currently, the PPF stands out as the premier long-term investment option, combining the assurance of government backing with the safety of your principal amount.

What’s more, it delivers impressive returns, and the icing on the cake is that the returns are entirely tax-free.

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A Top Pick for Long-Term Investment

The PPF scheme is the ultimate choice for those looking to make long-term investments. Y

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ou’re allowed to invest up to Rs 1.5 lakh each year, and the scheme comes with the added benefit of compound interest.

Furthermore, market fluctuations do not impact your funds in these government-backed schemes.

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Unveiling the Path to Rs 42 Lakhs

Let’s explore the potential of the PPF scheme when you invest Rs 5000 every month. This translates to an annual investment of Rs 60,000.


If you continue this investment for 15 years, your maturity amount will reach Rs 16,27,284.

Extend your deposits in blocks of 5 years, and after 25 years, your fund will swell to approximately Rs 42 lakh (Rs 41,57,566).


Your total contribution over the years will amount to Rs 15,12,500, with interest income reaching Rs 26,45,066.

Likewise, if you choose to invest Rs 12,500 monthly, you can expect to accumulate Rs 1 crore after 25 years.

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Monthly Investment vs. Maturity Amount

  • For a monthly investment of Rs 1000, you will receive Rs 8.17 lakh in 25 years.
  • Investing Rs 2000 monthly will yield approximately Rs 16.35 lakh after 25 years.
  • With a monthly deposit of Rs 3000, your fund will grow to around Rs 24.52 lakh in 25 years.
  • For those contributing Rs 10,000 monthly, the wealth amassed will be close to Rs 81.76 lakh after 25 years.

Opening a PPF Account

Starting your PPF investment requires a minimum deposit of Rs 500. You can open a PPF account at your nearest post office or bank.

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From January 1, 2023, the government is providing a 7.1 percent interest rate on this scheme, with a maturity period of 15 years.

Account holders have the option to extend it in blocks of 5 years, with the choice to continue contributions or not.

Additionally, after completing 5 years in the scheme, you can apply for a loan.


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