PPF Calculator: You can easily become a millionaire through Public Provident Fund, just do these simple things

PPF Calculator: Public Provident Fund (PPF) is a long term savings scheme in India. At present, investors are getting the benefit of 7.1 percent interest rate on PPF from April 1, 2023. Investors can invest in PPF account in any bank or post office. However, any investor has to invest a minimum of Rs 500 in a year in the PPF account and in its absence the PPF account may become inactive. Also know that you cannot invest more than Rs 1.5 lakh in a PPF account in a year. PPF account takes 15 years to mature.

If you go for traditional investment option, it will take you a lot of time to build a corpus of Rs. crores but personal finance experts say that this work can be done easily with the power of compounding in PPP investment. Anyone can extend the PPF account for 5 years and this can be done any number of times. Whenever you extend your PPF account, you should extend it with investment option so that you will get double benefit on it. Like, interest will be given on both PPF maturity amount and fresh investment. Through this, you will get maximum benefit on your investment which can increase your returns manifold. 

 

In simple words, anyone can start investing in PPF account from time to time and get Rs 1 crore or more by the time of their retirement.

If an investor extends the PPF account twice for 5 years each after the maturity of 15 years, then he is able to earn a good amount of money and become a millionaire in 25 years. Let us know how this can happen – If a PPF investor deposits Rs 1.5 lakh in his PPF account in a year – it can also be deposited in the form of monthly installments such as Rs 8333.3 every month. Now accordingly, the maturity amount of your PPF investment of 25 years will be – 1,03,08,015 or Rs 1.03 crore. Here it is important to keep in mind that you have invested a total of Rs 37,50,000 and according to the 7.10 percent annual interest rate (current interest rate), you have received a total interest of Rs 65,58,015. 

PPF taxation rules give you the EEE tax benefit in which not only you get tax exemption on the annual amount of Rs 1.5 lakh invested in PPF, apart from the annual investment, the maturity amount of PPF is also tax free. In this way you get triple EEE tax benefit which is known as exempt-exempt-exempt

It is called benefit.