There are many schemes which have been designed for retirement, Public Provident Fund (PPF) is also one of them. This scheme is very good for adding a lot of money in the long term. You can deposit a minimum of 500 rupees and a maximum of 1.5 lakh rupees every year in PPF. But if you want, you can earn interest through PPF without contribution, that too in lakhs. Even big experts will hardly be able to tell you this way of earning interest on PPF. Know how this will work.
How will this Jugaad work?
You can deposit a maximum of 1.5 lakh rupees in a year in PPF. Currently, this scheme is getting 7.1% interest and this interest increases on the basis of compounding. The maturity period of PPF is 15 years, but you have to extend it twice in blocks of 5-5 years and continue the investment. This means you have to deposit 1.5 lakh rupees annually for 25 years.
A fund of 1 crore will be accumulated in 25 years
When you invest 1.5 lakh rupees annually in PPF for 25 years, your total investment will be 37,50,000 rupees and you will get interest of 65,58,015 rupees at the rate of 7.1 percent. In this way, you will have a total of 1,03,08,015 rupees in your PPF account.
Know what you have to do now
Even after 25 years, you do not have to withdraw this money from the account. If you do this, then whatever amount is deposited in your PPF account, it keeps earning interest according to the calculation of PPF. Since your account has matured, you can withdraw the entire amount from this account anytime or you can keep it deposited and earn interest on the deposit.
Earn more than 7 lakhs in interest
If you keep the entire Rs 1,03,08,015 in the account, then at the rate of 7.1%, you will earn Rs 7,31,869 in interest. In this way, you can earn lakhs of rupees every year in interest without contribution. As long as this money is deposited, you will keep getting interest on it.
Remember this thing in case of extension
Let us tell you that to extend the PPF account with contribution in blocks of 5 years each, you will have to submit an application to the bank or post office, wherever you have the account. You will have to submit this application before the completion of 1 year from the date of maturity. Keep this in mind especially to continue contribution in PPF account for 25 years.
