Want a guaranteed income of Rs 1 Crore? Invest in this scheme; See details

Public Provident Fund Calculator: The Public Provident Fund, or PPF, was launched by the Indian government years ago to benefit small savers who are not at risk of going hungry. It is one of the most popular government sponsored savings schemes in India. PPF is also one of the few schemes that provides a tax saving option to the public with its Exempt-Exempt-Exempt (EEE) feature, i.e. it is a completely tax-free savings option. Introduced in 1968 by the National Savings Institute of the Ministry of Finance, PPF has become a powerful tool for Indians to enjoy tax benefits.

PPF Interest Rate and Maturity

Currently, PPF offers an interest rate of 7.1 percent per annum, and the interest is calculated on a monthly basis. As per the guidelines, investors can invest their money in their PPF account for up to 15 consecutive years. However, if one does not need the money at the end of 15 years, he can extend the tenure of the PPF account for as many years as needed. This can be done in blocks of five years by submitting a PPF account extension form. Investors can invest a minimum of Rs 500 per annum and a maximum of Rs 1.5 lakh per annum in their PPF accounts.

Invest Rs 417 Daily, Become A Millionaire: Here’s How

With good interest returns, high popularity, low risk and tax-free nature, PPF can help investors accumulate up to Rs 1 crore if they invest properly. For this, investors have to follow the following procedure.

If you invest Rs 417 daily in your PPF account, the monthly investment value comes to around Rs 12,500. This means that every year, you are investing a little more than Rs 1,50,00 in your Public Provident Fund account, which is the maximum limit. In 15 years, the total accumulated amount will be Rs 40.58 lakh, and after that you will have to extend the tenure twice in a block of five years.

If you continue to do this from the age of 25 to the age of 50 i.e. for 25 years, the amount you will get at maturity will be Rs 1.03 crore. This amount will be completely tax free and the total interest earned on it will be around 66 lakhs. The amount you would have deposited in 25 years would be around Rs 37 Lakhs.

On this note, it is also important to mention that the best way to get a higher return on your investment is to deposit between the 1st and 5th of every month as the interest is calculated monthly.

However, if you cannot afford to invest such a large sum, there is no compulsion that you should. Public Provident Fund, or PPF, is flexible in nature in terms of investment as individuals can invest up to Rs 500 per year in their accounts.

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