Every individual should invest a portion of their income in a place where the money remains safe and yields good returns. With this objective in mind,the government runs several small savings schemes that allow people to invest safely and earn good returns. One such popular scheme is the Public Provident Fund (PPF).
The PPF scheme is extremely popular among investors. By investing small amounts each year,people can build a substantial corpus. Today,we will tell you about a way to invest in the PPF scheme that can help you earn up to ₹24,000 every month without making an annual investment.
7.1% Return and 15-Year Maturity
The PPF scheme is an excellent savings scheme that currently offers an interest rate of 7.1 percent. This interest rate is reviewed quarterly. Investors can invest a maximum of ₹1.50 lakh per year in this scheme,while the minimum investment limit is ₹500. The maturity period of the PPF scheme is 15 years,but after 15 years,you can extend the scheme twice for 5 years each. The biggest attraction is that PPF offers tax benefits,in which the invested amount,interest earned,and maturity amount are completely tax-free. It falls under the EEE (Exempt-Exempt-Exempt) category,giving investors unprecedented benefits.
How to Earn ₹24,000 Monthly Income Without Investing
The maturity period of the PPF scheme is 15 years. After 15 years,you can withdraw the entire amount from the scheme or extend it. However,you also have a third option: continue the scheme without making any fresh contributions. In this case,you can only earn from the interest earned on your PPF funds.
Income Calculation
Suppose you invest the maximum amount of ₹1.50 lakh every year in a PPF scheme for 15 years. Thus,your total investment over 15 years will be ₹22.50 lakh. After 15 years,you will have a total corpus of ₹40.68 lakh.
If you do not withdraw this fund and continue the scheme without investing,you will continue to earn interest on this ₹40.68 lakh fund at the current rate of 7.1%.
In this case,your annual interest income will be ₹2,88,828.
Accordingly,you will receive approximately ₹24,000 every month as interest alone,and this income will be completely tax-free.
This option becomes a secure source of regular income after retirement,which gives you excellent returns while keeping your principal amount safe.
