This scheme gets great interest.
Public Provident Fund (PPF) is a very popular and trusted scheme among many post office government savings schemes. This scheme not only gives great interest rate in the long term, but also gives the benefit of tax exemption. If you continue to invest in it continuously, then this plan can make you a millionaire.
Public Provident Fund (PPF) not only gives good returns in the long term, but also provides a great opportunity for tax savings. If you adopt an investment strategy of 15+5+5, then a fund of ₹ 1.03 crore can be prepared in 25 years. Regular income of about ₹ 61,000 is also possible every month with this amount. PPF currently gets 7.1% annual interest rate. On investing in this scheme, there is a benefit of tax exemption of up to ₹ 1.5 lakh under Section 80C of the Income Tax Act. That is, along with investment, tax savings.
How will the fund of ₹ 1.03 crore be made?
If an investor deposits ₹ 1.5 lakh every year for 15 years, then the total investment will be ₹ 22.5 lakh. This amount will be ₹ 40.68 lakhs after 15 years at 7.1% interest rate, which will include ₹ 18.18 lakh interest. Now if you allow this amount to remain in the account without making new investment for the next 5 years, then it will increase to ₹ 57.32 lakh, it will contribute ₹ 16.64 lakh interest. Similarly, if it allows it to increase for 5 years, then the total fund will reach ₹ 80.77 lakh, which will add an additional interest of ₹ 23.45 lakh. But if you continue investing ₹ 1.5 lakh every year for a full 25 years, then your total fund will reach ₹ 1.03 crore.
Pension -like income of ₹ 61,000 every month
Even after the completion of 25 years, if you allow this fund to stay in the account, then it will continue to get 7.1% interest on it. You will get an interest of ₹ 7.31 lakh annually at this rate. That is, regular income of about ₹ 60,941 every month. The most important thing is that your original fund will be safe ₹ 1.03 crore. Any person can start investing anytime in the PPF scheme. This is right for children, employers and businessmen, all.