Most of the people who invest want to invest their money in such a place where the money is safe and the returns are also good. Government schemes are considered reliable for this reason. One of these schemes is Public Provident Fund (PPF Scheme). Many people see it only as tax saving, but if given a long time, this scheme can give good monthly income through interest.

How to get benefit

The special thing about this scheme is that you can start with small amount also. There is a rule to deposit minimum Rs 500 in a year. The maximum limit is fixed at Rs 1.50 lakh. Its tenure is 15 years, but if needed, it can be extended further. That means investment will continue and interest will also increase.

what to do after 15 years

When 15 years are completed for the first time, you have two options – either stop it, or extend it twice for 5 years each. Many people do not know that even if you extend the loan further, interest will continue and the amount will increase more than before.

Where do you get the real benefits?

The real benefit comes when you continue this scheme for about 25 years. During this period, if the maximum amount is deposited every year, your investment will be around Rs 37 lakh. In the long run, this money can reach around Rs 1 crore after getting interest.

How much money is earned every month?

If we look at the interest rate, currently we are getting around 7.1% annual interest. This means that Rs 1 crore will get interest of more than Rs 7 lakh in a year. If it is divided in 12 months, then approximately Rs 61 thousand will be received every month only in the form of interest.

Big support after retirement

Many people look for pension or another permanent source of income after retiring from job. In such a situation, this interest of PPF works like fixed income. Since it is a completely government scheme, it is safe and is not affected by market risk.

no risk in earning

The ups and downs in this scheme are not like the share market, hence people who do not like much risk often choose this scheme. The overall thing to understand is that this earning is not made in a day. If you keep investing continuously for a long time, then after retirement you can get around Rs 60 to 61 thousand every month only in the form of interest.