PPF Account: PPF is a long-term investment scheme which is proving to be a great investment option for investors. A retired employee can create a substantial fund by investing in this scheme. As per the PPF rules, an investor can start investing in his PPF account with as little as Rs 100. Its account can be opened in a nearby bank or any post office.
For information, let us tell you that if a person invests continuously in PPF, then he can become a millionaire till maturity. Let’s know about it in detail how it is possible.
PPF account rules
If you have a PPF account, then you will need to invest at least Rs 500 in it. The investment tenure in this scheme has been fixed at 15 years. A person earning in this scheme can deposit together in a financial year or make a maximum investment of Rs 1.5 lakh in a year.
Benefits of PPF account
PPF account follows the E-E-E rule. That is, if a person invests Rs 1.5 lakh in a year, then he gets tax exemption. Apart from this, tax exemption is also available on its maturity. In this scheme, interest is given at the rate of 7.1 percent on investment, which is available in three months.
The maturity of PPF account is 15 years. But investors can continue with the PPF account without withdrawing the maturity amount. The investor has the option to extend his PPF account for another 5 years even after maturity.
Know immediately how to get lakhs of funds
Explain that if you start investing in PPF account at the age of 30 years and extend your PPF account three times, then in this case the account holder will be able to invest in PPF account for 30 years. Suppose investors invest Rs 1.50 lakh every year in PPF account, then after 30 years of investment, the total interest will be around Rs 1.54 crore, based on the amount of interest received by PPF at 7.10 percent.
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