PPF calculator: If you continue to invest Rs 12,500 every month in PPF for 25 years, you will get an amount of about Rs 1.16 crore on maturity. At present, the annual interest rate on this is 7.1 percent.
Add rightsofemployees.com as a Preferred Source
Public Provident Fund PPF: PPF is a retirement-focused investment scheme, which helps in generating inflation-beating returns over a long period of time. Investing in this from time to time can help you build a corpus of more than Rs 1 crore over a long period of time.
Know how the amount will be deposited
The interest rate of PPF changes every three months. At present, the interest rate on PPF is 7.1 per cent per annum. Interest is calculated every month. You have to invest for 15 years in PPF, that’s why it is called long term investment option. If you do not need the money, then you can increase its tenure twice in a block of 5-5 years i.e. you can invest in it for up to 25 years. For this, you have to fill the PPF account extension form.
The longer the deposit, the higher the return
Its specialty is that the longer you keep money in it, the more it grows.
According to a calculation from investment platform Groww, if one deposits Rs 12,500 a month (which is the highest monthly limit for PPF) and continues to do so for 15 years, he can earn Rs 43 lakh on maturity (if the interest rate is 7.1 per cent). persists) can be achieved.
How will the fund of 1 crore be prepared?
Now you can get more benefits by extending this account for five years within one year of maturity. In such a situation, after depositing Rs 1.5 lakh per year for 20 years, your PPF balance will reach Rs 73 lakh.
At the same time, if you continue this investment for five years and that is 25 years, then you will get an amount of about Rs 1.16 crore on maturity.
This means that with proper investment and patience, you can get strong returns.
Can avail tax exemption
Your investment in PPF is not taxable. The scheme has Exempt, Exempt, Exempt (EEE) status. This means that the money you deposit is not taxed. The interest earned on your investment is not taxed. Lastly, there is no tax on the maturity amount as well. This way your investment is completely tax-free. Along with this, you also get the benefit of deduction on PPF in order to save tax. It is included in the investment instrument under section 80C.
Add rightsofemployees.com as a Preferred Source
