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PPF is a 'magician': Earning from interest is Rs 1 crore 74 lakh 47 thousand 857, full ₹2,26,97,857 on maturity, see calculation


Public Provident Fund: If you are doing retirement planning or want to earn good money from investment in the long term, then you can choose this scheme. The scheme is more popular by the name of PPF.

Public Provident Fund: Most people want to become crorepatis and are looking for a place where money should be invested and where there is huge profit. But, how much will be the income from investment and if you want to stay out of the scope of Income Tax, then the Public Provident Fund (PPF) removes this worry. Investment in the scheme gives good returns and tax-saving options. If you are doing retirement planning or want to earn good money from investment in the long term, then you can choose this scheme. The scheme is more popular by the name of PPF.

Why is PPF considered the best option?

Public Provident Fund (PPF) is the most popular because the money deposited in it, the interest received, and the amount received on maturity (PPF Maturity) is completely tax-free. This means that it is kept in the EEE category. EEE means Exempt. There is an option to claim tax exemption on deposits every year. No tax has to be paid on the interest received every year. Once the account matures, the entire amount will be tax-free.

Who can invest in PPF?

Any citizen of the country can invest in Small Savings Scheme PPF. It can be opened in a post office or any bank. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be invested every financial year. Interest is calculated on an annual basis. However, interest is fixed every quarter. Currently, 7.1% interest is being given to PPF. The maturity period is 15 years. There is no facility to open a joint account in the scheme. However, a nominee can be made. There is also no option to open a PPF account in the name of HUF. In the case of children, the name of the guardian is included in the PPF account. But, it remains valid only till the age of 18.

How can PPF make you a millionaire?

PPF is a scheme in which it is easy to become a millionaire. Regular investment is required for this. Suppose you are 25 years old and you have started PPF. If you deposit Rs 1,50,000 (maximum limit) in the account between the 1st to 5th at the beginning of the financial year, then at the beginning of the next financial year, Rs 10,650 will be deposited from interest alone. Meaning, that on the first day of the next financial year, your balance will be Rs 1,60,650. If you do the same thing again next year, the account balance will be Rs 3,10,650. Because Rs 1,50,000 will be deposited again and then interest will be received on the entire amount. This time the interest amount will be Rs 22,056. Because the formula of compound interest works here. Now suppose 15 years of PPF maturity have been completed, then there will be Rs 40,68,209 in your account. In this, the total deposit amount will be Rs 22,50,000 and Rs 18,18,209 will be earned only from interest.

If you want to become a Crorepati, then invest even after maturity

PPF was started at the age of 25. On maturity of 15 years, at the age of 40, there is an amount of more than Rs 40 lakh in hand. But if the planning is for the long term, then the money will grow faster. In PPF, the account can be extended on a 5-5 year extension after maturity. If the investor extends the PPF account for 5 years, then the total amount will be Rs 66,58,288 by the age of 45. The investment in this will be Rs 30,00,000 and the interest income will be Rs 36,58,288.

At what age will you become a Crorepati?

The goal of becoming a crorepati will now be achieved. The PPF account has to be extended for another 5 years i.e. 25 years. Again, an investment of Rs 1,50,000 will have to be made annually. At the age of 50, a total of Rs 1,03,08,014 will be deposited in the PPF account. The investment in this will reach Rs 37,50,000 and the interest will reach Rs 65,58,015.

The interest income will cross 1 crore

Understand the second feature of PPF you can do a 5-year extension as many times as you want. Now if the account is extended for another 5 years, then at the age of 55 you will have Rs 1 crore 54 lakh 50 thousand 910. The investment in this will be only Rs 45,00,000, but the interest income will exceed 1 crore and the total income will be Rs 1,09,50,911.

Investment for 35 years will give Rs 2 crore 26 lakh 97 thousand 857

If you have invested in it for retirement, then PPF will have to be extended once again for the last 5 years. Meaning the investment will continue for a total of 35 years. In such a situation, maturity will be at the age of 60. In such a situation, the total deposit amount in the PPF account will be Rs 2 crore 26 lakh 97 thousand 857. The total investment in this will be Rs 52,50,000, while the interest income will be Rs 1 crore 74 lakh 47 thousand 857.

If you want to double your money, invest like this

When you retire at the age of 60, there will be no tax on the large amount of more than 2 crores deposited in PPF. Usually, if you earn such a large amount from somewhere else, you will have to pay a hefty tax on it. If both husband and wife run a PPF account together for 35 years, then the total balance of both will be 4 crore 53 lakh 95 thousand 714 rupees.

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