PPF Account: For individuals seeking a secure and reliable source of income, the Public Provident Fund (PPF) presents a valuable opportunity. By investing in this scheme, one can establish a consistent monthly income of Rs 60,000 post-retirement. This approach is not commonly discussed, even among seasoned financial experts.
Know how to get maximum profit
Here is an explanation of how it operates. An individual can contribute a maximum of Rs 1.5 lakh to the PPF annually. Currently, the scheme offers an interest rate of 7.1%, which is compounded over time. The PPF has a maturity period of 15 years; however, it is necessary to extend it twice in five-year increments while continuing to invest.
Annual investment of Rs 1.5 lakh
This implies that one must maintain an annual investment of Rs 1.5 lakh for a total of 25 years. Over this period, the cumulative investment will amount to Rs 37,50,000, yielding an interest of Rs 65,58,015 at the 7.1% rate. Consequently, the total balance in the PPF account will reach Rs 1,03,08,015. Even after the 25-year term, there is no obligation to withdraw the funds.
You can continue
If the account remains active, the deposited amount will continue to accrue interest according to PPF regulations. In this scenario, one has the flexibility to withdraw the entire sum at any time or to make annual withdrawals.
Disclaimer
This is general information based on available online sources. Please verify before making any transactions. Times Bull is not responsible for any financial investments made, as it is entirely your responsibility. For better results, please consult a financial advisor.
