New Delhi. Public Provident Fund is a scheme giving higher returns than small savings schemes like FD, RD. There are many options given to keep money safe for the future. There is also one such investment by adopting which you can become a millionaire. At present, interest on PPF is getting compounded at 7.1 percent per annum.
In such a situation, if you want to prepare funds for your future, then you can choose this option. Here we tell you about what kind of plan you should choose to become 1 crorepati through PPF. Which is better in terms of safety.
Explain that the maturity of PPF is 15 years and the maximum amount that can be deposited in the account every month is Rs 12,500. That means 1.5 lakh rupees annually. Here you have to make a maximum contribution of Rs 12,500 before 5th of every month till maturity. After this, the total value at maturity will be Rs 40,68,209 at 7.1 per cent per annum interest. There is also an option to extend the PPF account for 5 to 5 years after maturity. In this case, if the contribution continues for 25 years, the total value of your investment with compounding interest will be Rs 1.03 crore.
The best thing about PPF is that due to the post office scheme, every single deposit of your money is also safe here. Here you have a government guarantee on every penny. Another big advantage is that it offers tax benefits on investment. No tax is to be paid on the interest amount and maturity amount.