There are several government schemes that can be invested in at the post office. One of which is the Public Provident Fund (PPF). This is a scheme that can make people millionaires, but requires regular investment. This scheme offers attractive interest over a long period of time. It also offers tax exemptions. Let’s know the complete details of this scheme and how you can earn a lot of money every month by investing in it.
PPF is an excellent investment option. You can adopt the 15+5+5 investment strategy and accumulate a corpus of Rs 1.03 crore for 25 years. The interest earned on this amount can earn you Rs 61,000 every month. Public Provident Fund offers 7.1% interest per annum. By investing in PPF, you can claim tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
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How can you become a millionaire through the PPF scheme?
If you also want a substantial amount of money during retirement, then the PPF (Public Provident Fund) 15+5+5 strategy can be a great plan for you. The minimum maturity period of this scheme is 15 years. If you invest in PPF for 15 consecutive years and then take two five-year extensions, you can build a corpus of about Rs 1.03 crore in 25 years. This will earn you around Rs 61,000 per month.
By depositing Rs 1.5 lakh every year, you will invest Rs 22.5 lakh. At an interest rate of 7.1%, the corpus after 15 years will be Rs 40.68 lakh. This will result in an interest amount of Rs 18.18 lakh. After this, if you keep the money without making any new investment for another five years, then after 20 years you will have accumulated Rs 57.32 lakh, out of which Rs 16.64 lakh will be earned through interest. If you keep this amount for another five years, the total will be Rs 80.77 lakh. Out of this, Rs 23.45 lakh will be the additional amount earned from your savings. However, if you continue to add Rs 1.5 lakh annually for another 10 years, the total amount will reach Rs 1.03 crore.
Pension of Rs 61,000
After completing 25 years, you can have Rs 1.03 crore deposited in your PPF account. This amount will earn 7.1% interest per annum. At 7.1% interest per annum, it will amount to around Rs 7.31 lakh, which means you can earn around Rs 60,941 per month. Importantly, your principal amount of Rs 1.03 crore will remain the same.
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Who should invest in PPF?
Anyone can invest in this government scheme at any time. If a minor wants to invest, they can do so with the help of their parents. The minimum deposit to open an account is Rs 500. Joint accounts cannot be opened. Only individual accounts can be opened.
