Post Office Scheme: The scheme we’re talking about is the Post Office’s Public Provident Fund (PPF) scheme. This scheme can even make you a millionaire. However, you’ll need to invest consistently to achieve this. Let’s find out how you can make a lot of money from it.
PPF has long been considered a good investment option. Therefore, you should adopt a 15+5+5 strategy to invest under this scheme. This can accumulate a corpus of Rs 1.03 crore in 25 years. The interest earned on this amount can generate Rs 61,000 per month. The PPF scheme offers an annual interest rate of 7.1%. Investing in PPF entitles you to a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. Any Indian citizen can avail this scheme.
The 15+5+5 strategy of the PPF scheme means that the maturity period is 15 years, but if you wish, you can extend it further by 5 years each year. This means you can invest in this scheme for a total of 25 years. Now let’s get to the calculations… Depositing Rs 1.5 lakh every year for the first 15 years (15 x Rs 1.5 lakh) will result in an investment of Rs 22.5 lakh, with interest of Rs 18.18 lakh. If you leave this amount in the same account for another 5 years, you will have accumulated Rs 57.32 lakh after 20 years, of which Rs 16.64 lakh will be earned as interest.
Over 25 years, this amount will total Rs 80.77 lakh. Of this, Rs 23.45 lakh will be the extra amount from your savings. However, if you continue adding Rs 1.5 lakh annually for 10 more years, the total amount will reach Rs 1.03 crore. You can continue your PPF account even after 25 years and continue to earn interest on that amount. If you accumulate Rs 1.03 crore in 25 years, this amount will earn you 7.1% interest per year, or approximately Rs 7.31 lakh annually, meaning you can earn approximately Rs 60,941 per month.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.