Tuesday, June 28, 2022
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You can become a millionaire by depositing money in small savings scheme, know how

The PPF account is currently paying an interest of 7.1% for the period July to September 2021. This interest rate is higher than the FD rate of the bank. Tax exemption is also available on this under EEE, in which tax deduction up to Rs 1.5 lakh is available on the initial deposit.




Small Savings Account The name of the account may appear ‘short’ or refer to small in speaking. But its return is not small. If you keep depositing money in it, then it has the potential to make you a millionaire like a big bank account. Small Savings Accounts may be small in appearance but offer extremely high returns in the form of interest rates. Especially when it comes to fixed deposits, many sources of earning come together. Since there is no limit on the maximum deposit amount in this account, the chances of becoming a millionaire are immense.

For example, there is a rule to deposit a maximum of Rs 1.5 lakh in Public Provident Fund PPF. You can deposit up to a maximum of Rs 1.5 lakh in a financial year. On this type of small savings scheme, security is guaranteed by the government and many types of tax exemptions are also available. If investors keep depositing money for a fixed period, then the way of good income can open. It all depends on the deposit amount of the customer, how much money he deposits and for how many years he keeps the money in the account.

Earning with tax savings
The PPF account is currently paying an interest of 7.1% for the period July to September 2021. This interest rate is higher than the FD rate of the bank. Tax exemption is also available on this under EEE, in which tax deduction up to Rs 1.5 lakh is available on the initial deposit. Along with this, there is no tax on interest earned on maturity and withdrawal of money. This money is completely tax free. According to Archit Gupta of Cleartax, when a person starts a job, if at the same time he starts depositing more and more money in small savings schemes such as PPF, then he can become a millionaire till retirement.

What do experts say
Archit Gupta says, the tenure of PPF is 15 years, which can be extended by 5-5 years on maturity. Cleartax’s calculator states that if a customer deposits Rs 10,000 every month in fixed deposits, then on maturity of 30 years, he can get more than Rs 1 crore. The customer should assume that the interest of 7.1% will be available on his deposit for the entire plan period. Money can be deposited in PPF for a long period and this deposited money is completely safe as it is backed by the government.

How to earn 1 crore
Similarly, deposit in PPF according to the current interest rate of 7.1% and if this trend continues for 25 years, then the depositor will easily collect Rs 1 crore. Just keep in mind that money has to be deposited in the maximum limit of PPF. If a depositor starts investing in PPF with Rs 12,500 every month and does this work for 15 years, then he will have Rs 43 lakh at the time of maturity. This money will be available at the rate of 7.1% interest.

This earning from PPF can be extended for another 5 years after maturity. In this way, now after 20 years on investment of Rs 1.5 lakh every year, an income of Rs 73 lakh will be earned at the rate of 7.1% interest. Now the depositor will have to increase this amount again for the next 5 years. An investment of Rs 1.5 lakh every month for 25 years will earn more than Rs 1 crore 16 lakh 60 thousand.

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