PPF-Public Provident Fund, How to Become a Crorepati: The interest rate of PPF was reduced from 7.9 per cent to 7.1 per cent. However, it is believed that it may increase soon.
Everyone uses different methods to save. If someone deposits money through LIC, then they save their money through some other means. Many people consider saving money through PPF also fine, because there is no risk in it. In such a situation, if you too are thinking of saving money for the future through PPF, then you can also become a millionaire through this. If you also want to become a millionaire through PPF, then you know what you have to do…
Actually, if you want that you get one crore rupees as a return, then you will have to deposit money for this for a long time. Also you have to keep in mind that this will also increase your premium. Actually, the rate of interest in PPF is slightly lower, but due to the risk factor, people prefer to take PPF. In such a situation, if you start the policy at a young age to get a return of one crore, then you will get 1 crore rupees at the right time.
How much interest do you get?
Earlier PPF used to get a lot of interest, but now it has been reduced. However, the rate of interest of PPF keeps decreasing or increasing. Last year itself, the PPF interest rate was reduced from 7.9 per cent to 7.1 per cent. However, it is believed that there may be a boost in it soon. Yet many policies claim to pay even more interest.
How much can be deposited
There is a limit to deposit money in PPF, in such a situation you cannot deposit more money than a limit. For this, you can deposit only 150000 rupees in the bank. That is, if you want to save through PPF, then you cannot deposit more than one and a half lakh rupees in a year.
How many years will it take to accumulate?
If you want a return of 1 crore rupees, then you can deposit a maximum of 150000 rupees a year. If you guess, you deposit 150000 rupees every year, then you will have to deposit money for 25 years. Talking according to the present rate 7.1, you will get 1 crore 3 lakhs after 25 years.
This is how PPF works
PPF means Public Provident Fund is one of the small savings schemes. Investing in it is not only safe, but it gives full benefit of tax exemption. You can invest in PPF outright every month or three months or you year. If you want to invest monthly in PPF, then deposit money before the 5th of every month. You will not get much profit if you deposit money in it after the 5th.
The calculation of interest on PPF is on the minimum balance deposited from the 5th to the end of the month. The interest on the deposit is calculated every month. But, it is credited only at the end of the financial year. If you deposit money in PPF only once a year, then also submit it before the 5th of the month. Therefore, to take full advantage of interest throughout the year, it is beneficial to deposit the annual amount in PPF before April 5.
Public Provident Fund comes under EEE category. That means both investment and interest income are tax free. If you invest, you will get the benefit of deduction under section 80C of income tax. PPF account can be opened in any post office or public or private sector banks. Contributor can be invested for one year at one time or the option to invest in a maximum of 12 installations.
