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PPF Crorepati Plan: The interest on FD has now reduced but PPF is currently getting 7.1 percent annual interest. This interest is compound every year. Meaning you also get interest on interest. This is the strength of compounding PPF …Read more
Due to the government scheme, the money invested in it is safe as well as a stable and reliable return.
Highlights
- FD interest rates decreased, investors worried
- PPF gets 7.1% annual compound interest
- Make a millionaire in 25 years by investing Rs 12,500 every month
New Delhi. After the Reserve Bank of India reduced the repo rate, almost all banks including SBI and HDFC Bank have reduced interest rates on FD. FD is considered a safe investment. Due to lack of good interest and lack of money, a large number of people invest money in it. However, now investors are worried due to reduced interest rates. The interest rate of FD may have reduced, but you can still get a big interest. Money will also be safe and tax benefit will also be available. We are talking about Public Provident Fund (PPF). Many people believe that this is a way to save tax and add a small amount for retirement. but it’s not like that. PPF also helps in making thick funds in the long term.
Interest on ppf
PPF is currently getting 7.1 percent annual interest on PPF. This interest is compound every year. Meaning you also get interest on interest. This strength of compounding makes PPF so special. The amount received on interest and maturity in this is tax-free. You can invest up to a minimum of 500 rupees and a maximum of 1.5 lakh rupees in PPF every year.
Apply 12,500 rupees every month, become millionaire
If you invest Rs 12,500 every month on PPF, then this amount reaches Rs 1.5 lakh in a year. If you increase this scheme twice after 15 years for 5-5 years, then after 25 years you can have a fund of about Rs 1.03 crore. In this, you will get 65 lakh rupees from interest. If your income is limited and you can deposit only 4,585 rupees every month, even then you continue investing in PPF, then you can become the owner of 1 crore rupees in about 35 years.
It is necessary to invest in PPF for 15 years
The original period of the PPF scheme is 15 years. On completion of 15 years, the investor has two options. First, you take out all your money or take two extensions of 5-5 years. In these 10 years, you can give up your money without investing. If you continue to invest money, then a big amount will be made.
PPF tax discount
If you can get tax exemption under Section 80C of the Income Tax Act on investment of up to Rs 1.5 lakh every year. The amount of interest and maturity received on this is also tax-free. That is, there is a benefit of tax exemption on investment, interest, and maturity.
