Every Indian putting his sweat and toil into his work on a daily must realise that the pay will not be enough to collect the kind of money required to retire on. For that to happen, a money-making tool is required. And that is where the Public Provident Fund comes in. And here we take the help of the PPF calculator HDFC Bank has rolled out online. It is the ideal way to accumulate wealth gradually, month after month and year after year and at the end of a certain period that money comes back into your bank account along with the interest on which the magic wand of compounding has been waved, virtually helping double the money in certain cases. This is due to the high PPF interest rate of 7.1%.
Every account holder must do one thing, make sure there is no break in continuity of the investment. Every year Rs 150,000 can be invested, but that is not always possible. So, we are taking here an investment of Rs 100000 every year and that too at the start of the fiscal, which means the PPF subscriber must head to his bank in the first week of April and deposit this amount to earn the maxmimum interest possible.
So, what does that mean in real terms for the PPF calculator HDFC Bank has online to figure out?
PPF investment: Rs 100000.
PPF interest rate: 7.1
PPF tenure: 15 years
When the PPF calculator is done with the exercise, here is the impressive maturity amount that the investor gets: Rs 2712139. Out of this just Rs 1500000 was invested by the account holder and Rs 1212139 was delivered to him via the PPF interest rate.
While bank fixed deposit rates may be a little higher than this, just remember that on PPF interest the account holder does not have to pay any tax at all. And the best part is, the account holder does not have to do anything at all except ensure he invests this Rs 1 lakh sum every year, year after year.
Note: These are indicative numbers and the actual amount will be on the PPF passbook of the account holder.)
PPF Calculator HDFC Bank has rolled out shows how an account holder can earn over Rs 2700000 from just Rs 15 lakh, courtesy the high PPF interest rate and the magic of compounding. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
