PPF: Most of the people invest with the thought that they can create a big fund even with a small investment every month. Employed investors look for a scheme in which they can create a corpus of more than Rs 1 crore by investing every month. Post Office’s Public Provident Fund (PPF) can help you aim to build your big corpus.
PPF: Most of the people invest with the thought that they can create a big fund even with a small investment every month. Employed investors look for a scheme in which they can create a corpus of more than Rs 1 crore by investing every month. Public Provident Fund (PPF) of the post office can be your aim to build a big fund. This scheme not only gives you the option of safe savings, but the compound interest available in it can make you a millionaire. At present, interest is being given on it at the rate of 7.1 percent.
Minimum investment will be Rs 500
PPF account can be opened with only Rs 500. You can deposit a maximum of Rs 1.5 lakh annually in your PPF account. If you deposit Rs 12,500 in your PPF account every month, then on maturity you will get a total of Rs 40.68 lakh. PPF account matures in 15 years. However, after maturity, you can extend it for another 5 years. That means, you can invest in this scheme for a total of 25 years. You can withdraw your money from it after 15, 20 or 25 years.
How to get one crore rupees?
If you want to become a millionaire through PPF savings, then you must have invested for 25 years. In this, by depositing a total of Rs 37.50 lakh with interest of Rs 65.58 lakh at the current 7.1% annual interest rate, you will get Rs 1.02 crore on maturity.
|monthly investment||You will get this much money in 15 years (Rs)||You will get this much money in 20 years (Rs)||You will get this much money in 25 years (Rs)|
Can’t withdraw money for 5 years
You cannot withdraw your money for the next 5 years from the year of opening the PPF account. After completion of 5 years, money can be withdrawn by filling Form 2. However, if you withdraw money before 15 years, you will have to pay a penalty of 1%. Any person can open this account in his/her name in any post office or bank. Additionally, the account can also be opened for another person on behalf of the minor.
Where can PPF account be opened?
You can open your PPF account in any bank or post office. You can open it for your child in your name. However, PPF account cannot be opened in the name of Hindu Undivided Family (HUF).