PPF Account Tips- Investing just Rs 100 per day can make you a millionaire, know the full details
If you are a salaried person, then you should invest part of your earnings in a place where you get good returns, not only returns but also provide financial security, if you are also looking for such an investment scheme, then Public Provident Fund (PPF) is a good option, has become a popular choice with its attractive interest rates and tax benefits, let's know full details about it-
Main benefits of PPF
High-interest income: PPF currently offers an interest rate of 7.1%, making it an attractive option for long-term savings.
Tax exemption: Contributions to a PPF account are eligible for tax deduction under Section 80C, which provides an additional incentive for investors.
Long-term growth potential: Even a small monthly investment can lead to substantial wealth accumulation.
Maturity period: A PPF account matures in 15 years, allowing account holders to withdraw the entire amount.
Flexibility: After the initial 15-year period, you can easily grow your account and decide whether to make additional monthly contributions or simply let the accumulated funds continue to earn interest.
The math behind PPF Let's analyze the potential income from a PPF account:
Initial investment: If you invest Rs 1,000 every month for 15 years, your total contribution would be Rs 1.80 lakh.
Returns after 15 years: On maturity, your investment could grow to around Rs 3.25 lakh, including Rs 1.45 lakh earned as interest.
Growth after maturity: If you grow the PPF account for another 5 years by continuing to invest Rs 1,000 monthly, your total amount could be around Rs 5.32 lakh.
Further expansion: Continuing this trend for the next 5 years can grow your corpus to around Rs 8.24 lakh, which shows the powerful effect of compounding interest.