PPF: Everyone’s dream is to become a millionaire and make the future financially safe. But due to lack of information about the right plan and investment, many people are unable to achieve this target. If you are also looking for a safe and reliable plan, Public Provident Fund (PPF) can be a great option for you. This scheme not only keeps your money safe, but can also make you a millionaire in a long time.
Invest Rs 12,500 every month
If you deposit Rs 12,500 in your PPF account every month, then this amount becomes 1.5 lakh annually. The same is the limit of maximum investment in PPF. If you invest for 15 consecutive years according to the annual interest rate of the current 7.1%, then you will get Rs 40.68 lakh on maturity.
Your total investment: 22.50 lakh rupees
Income as interest: 18.18 lakh rupees
However, this calculation is based on the current interest rate, which is revised by the government in every quarter.
How to get more than 1 crore rupees in 25 years?
The basic period of PPF is 15 years, but it can be extended to 5-5 years block. That is, you can continue investing for a total of 25 years. If you deposited Rs 12,500 every month and continued it for 25 years, then….
Total investment will be: Rs 37.50 lakh
Total interest will get: 65.58 lakh rupees
Total amount will be: 1.03 crore rupees
But keep in mind, it is necessary to apply to increase the account a year before the completion of 15 years. If you did not apply on time, the account will not be extended further.
PPF Tax Benefits
The biggest advantage of PPF is that it does not tax investing, interest and maturity money. This scheme comes in EEE (examept-exmept-exprept) category.
Tax exemption on investment up to Rs 1.5 lakh under Section 80C
No tax on interest
Maturity money is also tax free
Why invest in PPF?
Government Guarantee: The government is running this scheme completely.
Long benefits: A fund of Rs 1 crore can be made with a 25 -year plan.
Compounding interest: Interest is available every year, which leads to more returns.
Tax Savings: Both investment and returns are tax free.
If you are also planning a safe and beneficial investment, then PPF can be a great option for you. You can also become a millionaire in the future by investing a little bit.