There are many investment options today. Starting from the stock market to mutual funds, cryptocurrencies – there are a lot of investment options everywhere. But many people want safe investments. Post Office can be a good choice for them. The scheme being discussed here is the Post Office’s Public Provident Fund (PPF) scheme. In this scheme, a person can also become a millionaire. However, for this, consistency in investment is required. Now let’s understand about this scheme
Understand the 15+5+5 formula
PPF has long been known as a good investment option. To invest under this scheme, one has to follow the 15+5+5 formula. Through this, 1.03 crore taka can be deposited in 25 years. This amount of interest can earn 61,000 every month.
Tax Savings
The PPF scheme offers an annual interest rate of 7.1 percent. By investing in PPF, an individual can also get a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Any Indian citizen can invest in this scheme.
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Can invest for 25 years
The 15+5+5 formula of the PPF scheme means that the maturity period is 15 years. Beyond this, if an investor wants, then the period can be extended by 5 years every year. This means that a total of 25 years can be invested in this scheme.
How much money will be earned in 15 years?
Now let’s calculate. If you deposit Rs 1.5 lakh every year for the first 15 years (15 x Rs 1.5 lakh), you will invest Rs 22.5 lakh. The interest on which will be Rs 18.18 lakh. If this amount is kept in the same account for another 5 years, then after 20 years, a total of Rs 57.32 lakh will be deposited. Out of which Rs 16.64 lakh will be available as interest.
Read More –PPF Scheme: Invest ₹1.5 Lakh Yearly and Get ₹1.03 Crore in 25 Years With Zero Risk
It is possible to become a millionaire in 25 years
Over 25 years, this amount will total ₹80.77 lakh. Out of this, ₹23.45 lakh will be the additional amount from your savings. However, if you continue to add ₹1.5 lakh annually for another 10 years, the total amount will reach ₹1.03 crore.
Earn ₹61,000 per month
Even after 25 years, a person can continue to have a PPF account and also earn interest on that amount. If a person deposits ₹1.03 crore in 25 years, then this amount will earn 7.1 percent interest per year. This means that approximately ₹7.31 lakh will be earned annually. Which means that approximately ₹60,941 can be earned per month.