Retirement tension is over, will earn more than 18 lakhs from interest on investing in this scheme…
New Delhi:- Most people want to become millionaires and are looking for a place to invest their money, where they can get big profits. If you want to know how much you will earn from investment and want to stay out of the purview of income tax, then the public provident fund removes your concern.
Let me tell you, this scheme offers good returns (PPF maturity calculator) and tax saving options on investment. If you are doing retirement planning or want to earn well from investing in the long term, then you can choose this scheme. This scheme is more popular than the name of PPF.
Why PPF is considered a good option
Public Provident Fund is the most popular because the money deposited in it, interest and money received on maturity is completely tax free. That is, it is kept in the EEE category. Eee means discount. Every year there is an option to claim tax exemption on deposits. There is no tax on interest received every year. After the account mature, the entire amount will be tax free.
Who can invest in PPF?
Any citizen of the country can invest in small savings scheme.
It can be opened in a post office or any bank.
In every financial year, at least Rs 500 and a maximum of Rs 1,50,000 can be invested.
Interest is calculated on an annual basis. However, the interest is fixed on a quarterly basis. Currently, 7.1 percent interest is being received on PPF.
The maturity period is 15 years.
The scheme does not have the facility to open joint account. However, a nominee can be made.
In the case of children, the name of the guardian is included in the PPF account. However, it remains valid only by the age of 18 years.
How to become a millionaire from PPF
PPF is a scheme in which it is easy to become a millionaire. This requires regular investment. Suppose you are 25 years old and you have started PPF. If you deposit Rs 1,50,000 (maximum limit) to the account between 1 to 5th of the financial year, then only Rs 10,650 will be deposited from interest at the beginning of the next financial year. Meaning, your balance will be Rs 1,60,650 on the first day of the next financial year.
On doing the same again next year, the account balance will be Rs 3,10,650. Then there will be Rs 1,50,000 deposited and then interest will be available on the entire amount. This time the interest amount will be Rs 22,056. Because, here the formula of compound interest works. Now suppose that 15 years of PPF maturity have been completed, then you will have Rs 40,68,209 in your account. The total deposit amount will be Rs 22,50,000 and Rs 18,18,209 will be available only with interest.
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