PPF Scheme Interest Rate: Most of the people want to become a millionaire under this article of PPF Scheme. And keep on looking for it! That money should be invested in such a place where there is huge profit. But, how much will be the income from the investment! And you want to stay out of income tax net! So Public Provident Fund removes this worry of yours!
PPF Scheme Interest Rate
PPF Scheme Interest Rate
Good return on investment and tax saving option is available in PPF Scheme! If you are doing retirement planning! Or want to earn well from investing in the long term! So you can choose this scheme! This scheme is more popular by the name of PPF (Public Provident Fund).
Why PPF Scheme is considered the best option
Public Provident Fund is the most popular! Because the money deposited in it, the interest received and the amount received on maturity are completely tax free! Me.ng it has been placed in the EEE category. EEE stands for Exemption! 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 in the PPF Scheme, the entire amount will be tax free!
Who can invest in Public Provident Fund
Any citizen of the country can invest in Small Saving Scheme PPF! It can be opened in post office or any bank. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be invested in every financial year! PPF (Public Provident Fund) interest is calculated on an annual basis. However, the interest is fixed on a quarterly basis. PPF (PPF Scheme) is currently getting 7.1 percent interest! Maturity period lasts up to 15 years!
PPF Scheme Interest Rate
There is no facility to open joint account in PPF Scheme. However, a nominee can be made! There is no option to open PPF account even in the name of HUF. In case of children, the name of the guardian is included in the PPF (Public Provident Fund) account. But, it remains valid till the age of 18 only.
How PPF Scheme can really make a millionaire
PPF (Public Provident Fund) is one such scheme! In which becoming a millionaire is easy! This requires regular investment! Suppose you are 25 years old and you have started PPF Scheme! If you deposit Rs 1,50,000 (maximum limit) in the account between 1st to 5th at the beginning of the financial year! So at the beginning of the next financial year only Rs 10,650 will be deposited with interest!
PPF Scheme Interest Rate
That is, on the first day of the next financial year, your balance will be Rs 1,60,650! If you do this again next year, the balance of PPF (Public Provident Fund) account will be Rs 3,10,650! Because, Rs 1,50,000 will have to be deposited again! And then you will get interest on the entire amount! This time the amount of interest will be Rs 22,056. Because, the compound interest formula works here! Now suppose that 15 years of PPF (PPF Scheme) maturity have been completed! So you will have Rs 40,68,209 in your account! The total deposit amount in this will be Rs 22,50,000. And Rs 18,18,209 will be earned from interest only!
If you want to become a millionaire then invest in Public Provident Fund even after maturity
PPF (Public Provident Fund) was started at the age of 25. At the maturity of 15 years, at the age of 40, an amount of more than Rs 40 lakh is in hand! But if the planning is for long term then the money will grow fast. After maturity in PPF, the account can be extended for 5-5 years. If the investor extends the PPF account (PPF Scheme) for 5 years! So by the age of 45, the total amount will be Rs 66,58,288! The investment in this will be Rs 30,00,000 and the interest will be Rs 36,58,288!
Earning of interest in Public Provident Fund will exceed 1 crore
Understand the second feature of PPF (Public Provident Fund) that how many times you can extend 5 years! Now once again if the account is extended for 5 years! So at the age of 55 you will have 1 crore 54 lakh 50 thousand 910 rupees. The investment in this will be only Rs 45,00,000! But the interest income will be more than Rs 1 crore and the total income will be Rs 1,09,50,911! In this way you can earn crores of rupees in PPF Scheme.
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The post PPF Scheme Interest Rate: ₹ 1,74,47,857 will be available only from interest in PPF, ₹ 2,26,97,857 will be available on maturity appeared first on SRB Post.