People do different types of planning to secure the future. Some invest money in the stock market with high risk and some invest money in government schemes without taking any risk. If you also want to earn big money without any risk then you can invest in Post Office Public Provident Fund or PPF.
It is one of the small savings schemes launched by the Government of India, which not only provide stable and high returns, but also provide tax exemption. Let us know how crores of rupees can be earned in this scheme. Also how can I start investing in this scheme.
Special Features and Benefits of PPF Scheme
Investors can invest a minimum of Rs 500 per annum and a maximum of Rs 1.5 lakh per annum in their PPF accounts. Public Provident Fund, or PPF is an interest-paying risk-free scheme in India, as a rebate of up to Rs 1.5 lakh is offered to the investors under this scheme every year. The interest rate of PPF currently stands at 7.1 per cent, which is much higher than bank FDs.
Investment option for how many years
Under this scheme, investors can invest their money in their PPF account for 15 consecutive years. However, if one does not need the money at the end of 15 years, one can extend the tenure of the PPF account by as many years as needed. This PPF account extension can be extended further after five years.
How to become a millionaire?
With good interest returns, high popularity, low risk and tax free, PPF can help investors accumulate up to Rs 1 crore if invested properly. If you invest Rs 417 per day in your PPF account, then every month will be around Rs 12,500. This means that you are investing a little more than Rs 1,5,00 per year in your Public Provident Fund account, which is the maximum limit. This amount in 15 years, the total deposit amount will be Rs 40.58 lakh and after that you have to extend the tenure twice in every block of five years.
If you invest from the age of 35 to the age of 60, that is, for 25 years without breaking, then the amount you will get during maturity will be Rs 1.03 crores. There will be no tax on this amount and the total interest will be around 66 lakhs. The total amount deposited by you in the 25 years till your retirement age will be around Rs 37 lakhs.