Want Rs 1 Crore guaranteed income? Invest in this program; See the details
Public Provident Fund Calculator: The Public Provident Fund, or PPF, was launched by the Indian government years ago for the benefit of small savers, who have no appetite for risk. It is one of the most popular government-backed savings schemes in India. The PPF is also one of the few schemes that offers the public the opportunity to save taxes through its Exempt-Exempt-Exempt (EEE) feature, which means it is a savings option. completely tax free. Introduced in 1968 by the National Savings Institute of the Ministry of Finance, the PPF has become a powerful tool for Indians through which they can avail tax benefits.
PPF interest rate and maturity
Currently, PPF offers an interest rate of 7.1% per annum and interest is calculated on a monthly basis. Investors can invest their money in their PPF account for up to 15 years in a row, according to the guideline. However, if one does not need the money after 15 years, he can extend the duration of the PPF account for as many years as needed. This can be done in blocks of five years by submitting a PPF Account Extension Form. Investors can invest as little as Rs 500 per year, and as high as Rs 1.5 lakh per year, in their PPF accounts.
Invest Rs 417 a day, become a Crorepati: here’s how
With good interest yields, high popularity, low risk and tax-free nature, PPF can also help investors accumulate up to Rs 1 crore if they invest properly. For this, investors should follow the method mentioned below.
If you invest Rs 417 per day in your PPF account, the monthly investment value amounts to around Rs 12,500. This means that per year you invest a little more than Rs 1,50,00 in your Public Provident account Fund, which is the maximum limit. In 15 years, the total accrued amount will be Rs 40.58 lakh, and thereafter, you will have to extend the tenure twice in blocks of five years each.
If you continue to do so from 25 to 50, i.e. for 25 years, the amount you will get at maturity will be Rs 1.03 lakh crore. This amount will be completely tax free and the total interest earned will be almost 66 lakh. The total amount you would have deposited in 25 years will turn out to be around Rs 37 lakh.
On that note, it should also be mentioned that the best way to get higher returns on your investment is to deposit the money between the 1st and 5th of each month, as the interest is calculated monthly.
However, if you can’t invest such a sum, you don’t have to. The Public Provident Fund, or PPF, is flexible in nature in terms of investment, as individuals can invest as little as Rs 500 per year in their accounts.
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