Post Office Scheme – There are several government schemes running under the Post Office, one of which is the Public Provident Fund (PPF). This is a scheme that can make people millionaires, but regular investments are required. It has long been a scheme that offers attractive interest rates and also offers tax benefits. Let’s learn more about this scheme and how you can earn a substantial amount every month by investing in it.

PPF is an excellent investment option. You can use a 15+5+5 investment strategy to accumulate a corpus of Rs 1.03 crore over 25 years. The interest earned on this amount can generate Rs 61,000 per month. The Public Provident Fund offers an annual interest rate of 7.1%. Investing in PPF allows you to claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, thereby reducing your tax liability.

How can you become a millionaire?

If you also want a substantial sum in your retirement, the PPF (Public Provident Fund) 15+5+5 strategy could be an excellent plan for you. This scheme has a minimum maturity period of 15 years. If you invest in PPF for 15 consecutive years and then take two five-year extensions, you can build a corpus of approximately Rs 1.03 crore in 25 years. This fund can earn you approximately Rs 61,000 per month.

By depositing Rs1.5 lakh every year for the first 15 years (15 x Rs1.5 lakh), you will invest Rs22.5 lakh. At an interest rate of 7.1%, the fund grows to Rs40.68 lakh after 15 years, earning Rs18.18 lakh in interest. If you then leave this amount for another 5 years without making any new investments, you will accumulate Rs57.32 lakh after 20 years, earning Rs16.64 lakh in interest. If you keep this amount for another 5 years, the total will be Rs80.77 lakh, with Rs23.45 lakh coming from your savings. However, if you continue adding Rs1.5 lakh annually for 10 more years, the total amount will reach Rs1.03 crore.

Pension of Rs 61,000

After completing 25 years, you can continue to maintain a fund of Rs 1.03 crore in your PPF account. This amount will earn you 7.1% interest every year. At 7.1% interest per year, this will amount to approximately Rs 7.31 lakh, which means you can earn approximately Rs 60,941 per month. Importantly, your original fund of Rs 1.03 crore will remain the same.

 

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