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Best Savings Tips: Only 200 Rupees daily saving can create more than 30 lakh in 20 years check PPF calculation

How to make money: Often we do not give much importance to the savings of Rs 100, 200 or 500. We have to believe that what will happen with so little money. but it’s not like that. If we make small savings a regular habit, then it can make a big amount in the coming years. For example, if you save Rs 200-200 a day and invest it every month in the Public Provident Fund (PPF) scheme of the government, then in the next 20 years you will have an amount of about Rs 32 lakh. Let’s understand how PPA can make a big fund from small savings…


Investing in PPF 

You can open a Public Provident Fund (PPF) account at the post office or bank branch. This account can be opened with just Rs 500. In this, up to Rs 1.50 lakh can be deposited annually. The maturity of this account is 15 years. But, after maturity, there is a facility to extend it further in the bracket of 5-5 years. PPF is currently getting 7.1 percent annual interest.

How to make a fund of 32 lakhs from Rs 200 

If you save Rs 200 every day, then every month you will be saving about Rs 6000. Now if Rs 6000 is invested in a monthly PPF account and it is maintained for 20 years, then you will get Rs 3,195,984 on maturity. This calculation has been done assuming 7.1 percent annual interest rate for the next 20 years. The maturity amount may change when the interest rate changes. Know here that compounding in PPF happens annually.

Benefits of starting at a young age 

Suppose your age is 25 years and you have 30-35 thousand monthly income. In the initial days, you do not have much liability, so saving Rs 200 per day is easy. In this way, at the age of 45, you can get a fund of about Rs 32 lakh from PPF.

Advantages of PPF 



There are many benefits of opening a PPF account. The biggest benefit you will get in tax saving. This is because one can take tax deduction under 80C on deposits of Rs 1.50 lakh per annum in PPF. For this, maturity fund and interest income are also tax free.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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