PPF Interest Rate: Today many people have started investing along with their jobs. Everyone dreams of becoming a millionaire. There are many investment options available nowadays, which are giving you great returns, if you are also looking for a safe money saving plan. So, you get good return under PPF scheme.
Today we will know more about the PPF scheme run by the government. This scheme also offers high interest and there is no risk in it. If you invest Rs 500 per day in this PPF scheme, you can get more than Rs 1 crore after maturity.
- HDFC Home Loan and Interest Rate Per Year in 2024
- AU Credit Card – Best For Travel, Benefits & Apply Online
- IDFC FIRST SWYP Credit Card – 6 step Easy Process, Rewards, Discounts
- 5 Benefits of American Express Platinum Travel Credit Card – अप्लाई कैसे करे पूरी जानकारी
- 7 Best Credit Cards For Bill Payment & Cashback
The government pays interest at the rate of 7.1 percent in PPF scheme, which is a lot of interest. This interest is considered higher than post office and bank fixed deposits. This interest is compound interest which means that you get three times the interest of the deposited amount as your interest is also interest.
PPF Interest Rate 2024 and Investment Guide
Funding ₹1 crore from your Public Provident Fund (PPF) account is achievable with disciplined investment and patience. Based on this process, you can also invest and make coppers of 1 crore rupees. PPF interest rate rate is very low but you can get more interest as you invest amount.
- Invest ₹1,50,000 every year.
- Make your investment on April 1 every year to accrue interest.
- Interest will accrue at the end of each financial year.
Here are the steps to build your corpus
- If you invest ₹1,50,000 on April 1 of the first year, at an PPF interest rate of 7.1%, you will earn approximately ₹10,650 by the end of the year. Hence your balance will be ₹1,60,650 which will be your investment + interest rate.
- In the second year you invest another ₹1,50,000 on April 1. So your total investment will be ₹ 3,10,650. Now if the interest is calculated on the basis of 7.1%, the interest will be ₹22,056. So your balance at the end of the year will be ₹3,32,706.
- Continue your investment of ₹1,50,000 on 1st April every year. So if you invest for 20 years, your total investment will be ₹30,00,000. And your total interest will be ₹36,58,000. So in total after 20 years you can get ₹66,58,000.
- If you invest for 25 years, your investment will be ₹37,50,000 lakh. And the interest will come to ₹65,58,000. So your total amount will be ₹1,03,00,000. So total after 25 years you can get ₹1,03,00,000.
Summary
- Investment: To invest ₹1,50,000 on 1st April every year.
- 25 years or more: Your total investment will be ₹37.50 lakh.
- Total Corpus: ₹ 1.03 crore, you will get ₹ 65.58 lakh as interest.
Tax Benefit Available in PPF
The scheme provides tax relief up to Rs ₹1,50,000 under Section 80C of Income Tax. Apart from this, the special thing about this scheme is that it is completely tax free. Key tax is not levied on investment amount, interest and amount received after maturity.
PPF Scheme: Maturity, Withdrawal and How to Become a Millionaire
Maturity of the Scheme:
- Maturity Period: PPF (Public Provident Fund) scheme matures in 15 years.
- Extension: If the investor wants, he can continue the investment even after this 15 years. An investor can extend the account for 5-5 years, for this he has to apply one year before maturity.
Withdrawal before maturity:
- Partial Withdrawal: In PF scheme, investors can make partial withdrawal after 6 years. In this case, he can withdraw 50% of the amount deposited in the account.
- Loan Arrangement: After 3 years of investment in the PF account, the investor can take a loan up to 25% of the amount deposited in the PF account. The loan repayment period is 36 months and carries 2% interest.
How to become a millionaire with PF scheme:
- Krodpati Yojana: If you invest Rs 405 per day, the annual investment will be Rs 1,47,850.
- 25 Years Investment: Invest like this for 25 years, and get 7.1% PPF interest rate, you will get more than Rs 1 crore at maturity.
Conclusion
If you contribute daily in this PPF scheme Rs. 500, then after maturity you will get Rs. More than 1 crore can be obtained. The government pays PPF interest rate of 7.1 percent in the PPF scheme, which is a lot of interest. This interest is considered higher than post office and bank fixed deposits. This interest is compound interest which means you get three times the interest of the deposited amount as your interest is also interest.
