Become a Millionaire With PPF Investment
The post office has many schemes. These schemes can make you rich. One of these schemes is the Public Provident Fund (PPF).
PPF is a special scheme that can help you become a crorepati. To become a crorepati at PPF, you have to deposit only Rs 417 per day.
There are many special rules in this scheme. To become a millionaire, you should know how to take advantage of those rules properly. Learn more about how PPF can help you become a crorepati.
Maturity Period of the Scheme
The maturity period of the PPF scheme is 15 years. But you can extend it two more times for another 5 years.
Apart from this, investors will also get tax benefits from this scheme. On the other hand, talking about the returns of this scheme, you will be given 7.1 percent interest annually.
In this scheme, you can also take advantage of your compound interest every year.Learn more about the other important aspects of this scheme.
How Much to Invest Daily
If you invest Rs 1.5 lakh every year in PPF for 15 years, i.e., until PPF maturity, then your total investment amount in these 15 years will be Rs 22.50 lakh. Rs 1.5 lakh a year means Rs 12,500 per month, or Rs 417 per day.
You will get interest annually at an annual interest rate of 7.1 percent. On maturity, you will get a total of Rs 18.18 lakh as interest. You will receive a total of Rs 40.68 lakh in this manner.
Become a Millionaire in This Manner
On the other hand, if you want to deposit one crore rupees in this scheme, then after 15 years, you can increase the maturity period of PPF twice for 5–5 years.
If you invest Rs 1.5 lakh annually, your total investment will be Rs 37.50 lakh.
With an interest rate of 7.1 percent, you will get Rs 65.58 lakh as interest on maturity. In this way, after 25 years, your entire fund will be Rs 1.03 crore.
Who Can Invest?
Explain that any resident, including salaried, self-employed, and pensioners, can open a PPF account in the post office.
Only one person can open this account. But this is not the option where you can open a joint account with someone.
A parent or guardian can also open a PPF account in the post office on behalf of a minor child. But NRIs are not eligible to open this account.
These Documents Will Be Needed
For identity proof, you can provide a voter ID, passport, driving license, or Aadhaar card. For address proof, you can provide a voter ID, passport, driving license, or Aadhaar card.
Also, you will need a PAN card, a passport-size photograph, and Form E. PPF is an EEE investment, which means that the principal, interest, and maturity amount are all tax-free.
The account should be kept active with a minimum annual investment of Rs. Interest earned on the Post Office PPF account is compounded annually and paid on March 31 every year.
