PPF: Everyone dreams of becoming a millionaire and making their future financially secure. But due to lack of proper planning and investment information, many people are unable to achieve this target. If you are also looking for a safe and reliable scheme, then 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 the long run.
Invest Rs 12,500 every month
If you deposit Rs 12,500 every month in your PPF account, then this amount becomes Rs 1.5 lakh annually. This is also the maximum investment limit in PPF. At the current annual interest rate of 7.1%, if you invest continuously for 15 years, then on maturity you will get Rs 40.68 lakh.
Your total investment: Rs 22.50 lakh
Interest income : Rs 18.18 lakh
However, this calculation is based on the current interest rate, which is revised by the government every quarter.
How to get more than Rs 1 crore in 25 years?
The basic period of PPF is 15 years, but it can be extended in blocks of 5 years each. That means 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 would be: Rs 37.50 lakh
Total interest received: Rs 65.58 lakh
Total amount will be: Rs 1.03 crore
But keep in mind, it is necessary to apply for extension of the account one year before completion of 15 years. If you do not apply on time, the account will not be extended.
Tax benefits of PPF
The biggest advantage of PPF is that it is tax-free on investment, interest and maturity amount. This scheme comes under EEE (Exempt-Exempt-Exempt) category.
Tax exemption on investment up to Rs 1.5 lakh under section 80C
No tax on interest
Maturity amount is also tax free.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.