Financial experts often say it's not about how much you earn, but how much you save. There are many schemes where saving small amounts can lead to a large sum in the long run. Let's find out about one such scheme now.

People are looking for a safe way to save money or invest for the future. For such investors, the Public Provident Fund (PPF) is a highly reliable scheme offered by the Indian government. It's a secure savings scheme available at the post office. Government guarantee, tax exemption, and stable interest rates make PPF a top investment choice.

The Public Provident Fund is a long-term savings scheme with a 15-year term. You can deposit money monthly or once a year as you wish. You can invest a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh. Currently, the scheme has an annual interest rate of 7.1%. It is completely tax-free, meaning there's no tax on the investment, interest, or maturity amount.

To get Rs. 20 lakhs after maturity, you need to save Rs. 6,250 every month. That comes to Rs. 75,000 per year. If you deposit this amount regularly for 15 years, your total investment will be Rs. 11,25,000. The profit from the 7.1% interest will be about Rs. 8.9 lakhs. After 15 years, it will be Rs. 20.15 lakhs. This means you'll earn nearly Rs. 9 lakhs in interest alone in 15 years.

* Tax Benefit: PPF investments are eligible for tax exemption under Section 80C.

* Loan Facility: You can get a loan after the second year of opening the account.

* Partial Withdrawal: A certain amount can be withdrawn if needed after five years.

* Government Guarantee: Since it's a government-backed scheme, there is no risk.

Investing systematically in PPF yields higher returns through compound interest. As the monthly deposit amount increases, the interest also grows. It's best not to make withdrawals in between. This scheme is a great option for employees, business owners, and self-employed individuals. It's also useful for parents who want to save in their children's names for the future and for those seeking tax exemptions.

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