PPF is a post office small savings scheme with a maturity period of 15 years. But its specialty is that even after maturity, it can be extended for 5-5 years.
PPF Calculator:
Public Provident Fund (PPF) is a popular option for promoting long term investments. PPF is a post office small savings scheme with a maturity period of 15 years. But its specialty is that even after maturity, it can be extended for 5-5 years. PPF is getting interest at the rate of 7.1 percent compounding annually. In this, a maximum of Rs 1.5 lakh can be deposited annually. PPF is a better option for those who are aiming to build a fund for the future. Here’s a government guarantee on your money. That is, your every penny remains safe.
This government scheme makes crorepati
PPF is a good option for investors who do not want to take capital market risk. At the same time, they invest their money by making long term gains. If you continue to invest in PPF in a disciplined manner, it can make you a guaranteed millionaire. For this, instead of withdrawing money on maturity of 15 years, you should continue with this scheme. The interest and maturity income earned in this is also tax free. Know how you can become a millionaire with PPF account.
Case 1: If you invest till maturity
Maximum Monthly Deposit: Rs 12,500 (1.50 lakh
per annum ) Rate of Interest: 7.1 per cent
compounding p.a. After 15 years Maturity Amount: Rs 40.68 lakh
Total Investment: Rs 22.50 lakh
Interest Benefit: Rs 18.18 lakh
Case 2: If the scheme is extended 2 times for 5 years
Maximum Monthly Deposit: Rs 12,500 (1.50 lakh
per annum ) Rate of Interest: 7.1 per cent compounding p.a.
Maturity after 25 years Amount: Rs 1.03 crore
Total Investment: Rs 37.50 lakh
Interest Benefit: Rs 65.58 lakh
Features of PPF Scheme
One can deposit a maximum amount of Rs 1.50 lakh in PPF in a financial year. This maximum investment can also be made in 12 installments. At the same time, it is necessary to invest at least Rs 500. The scheme is giving returns of 7.1 percent compounding annually.
Your deposited amount of Rs 1.5 lakh in this account is completely trucks free. This scheme can be started only through a single account. A PPF account can also be started in the name of a child below the age of 10 years. However, the guardian has to take care of the account till he attains majority.
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