PPF Scheme : Zero Risk, Big Returns! Build a fund of 1.54 crores by investing ‘so much’ in PPF every month

What is the math of 1.54 crores?

The basic tenure of PPF account is 15 years. However, to reach the target of Rs 1.54 crore, you will have to extend the account a total of 3 times after 15 years in a 5-5 year block format. That means you have to continue investing for a total of 30 years.

• • Investment per month: 12500 (1.50 lakh per annum)
  • Total investment period: 30 years
  • Current Interest Rate: 7.1 percent (compounded annually)
  • Your total investment: 45,00,000 (Rs. 45 lakhs)
  • Total interest earned: 1,09,50,911 (about Rs. 1.10 crores)
  • Total Amount on Maturity : 1,54,50,911 (Rs. 1.54 crore) PPF Scheme

‘This’ trick will give more benefits

As per PPF rules, interest is calculated on the minimum balance between 5th and 30th of every month. So if you invest every month, deposit the money in the account before 5th of every month. If you are going to invest 1.5 lakhs once a year, then depositing the entire amount at the beginning of the financial year i.e. before 5th April will get the maximum interest for the whole year. PPF Scheme

Full exemption from tax

The biggest feature of PPF scheme is that it has got ‘EEE’ (Exempt-Exempt-Exempt) status.

• ₹1.5 lakh you invest annually is exempt from tax under ‘Section 80C’.
• The interest earned on this money every year is completely tax free.
• 1.54 crore at maturity after 30 years will also be completely tax-free. PPF Scheme

Account Opening Process

Online Method: If you already have a savings account with a bank and its net banking or mobile banking is enabled, you can open a PPF account in just a few minutes.

• Login to your bank’s internet banking or mobile banking app.
• Click on ‘Open PPF Account’ or ‘Services/Investments’ option in the menu.
• Select your savings account and fill the required details like nominee (beneficiary) name, address.
• First type the amount you want to deposit in the account (minimum 500).
• Complete the process by entering the OTP received on your registered mobile number. Your digital PPF account will be activated instantly. PPF Scheme

Offline method

• Go to the nearest bank branch or post office and get ‘PPF Account Opening Form’ (Form A).
• Fill the form accurately with your personal information, bank account details and nominee information.
• Attach required documents (eg Aadhaar card, PAN card, and passport size photograph) along with the form.
• Deposit the initial investment amount (by cash or check). After opening the account you will be given a ‘passbook’, which will record all the transactions. PPF Scheme

‘These’ documents are required to open PPF account

Before you go to open a PPF account at a bank or post office, it is essential to carry the following set of documents with you, so that your process goes smoothly.