The Public Provident Fund is the ideal tool to make money without having to stress yourself out about its safety and security or having fears about not being able to meet the obligation. The PPF account can be kept running with jus Rs 500 investment every year in case you face a fund crunch. However, it is advisable if you actually invest as much as is allowed in your PPF account. The government permits a maximum of Rs 150000 every year. The investment can be made in monthly installments or with a lump sum payment. Whichever manner suits you, just make sure you invest the amount right at the beginning of the month to make the biggest gains. Here is a chance to get over Rs 7500000 due to the high PPF interest rate.
You already have seen the biggest benefits listed above. To that add one more – you will create a massive fund for yourself and this will come in handy to meet expenses in an emergency or in case you lose your job. However, do remember that PPF has a lock-in period of 15 years. Partial withdrawal is allowed from the 6th year, but only if certain conditions are met.
However, to make PPF really pay you a big amount of money, you should not withdraw any funds at all from your PPF account. In fact, you should actually extend it for as long as possible after the 15-year period is over. You can extend it in blocks of 5 years indefinitely. For the public, the PPF is the best money-making, or wealth creating, tool for retirement.
And now, over to the high PPF interest rate of 7.1% which will make a lot of money for you due to the magic of compounding. Let the PPF calculator crunch the numbers and show you what an amazing money-making machine PPF is.
Let us assume that you start your PPF journey at 25 years of age. You continue it for the next 25 years without a break, and you invest Rs 110000 every year. The PPF calculator shows that at the end of this period, your PPF maturity value will be a colossal Rs 7559000. Out of this, your principal was just Rs 27.50 lakh and the interest earned on this money was a whopping Rs 48.09 lakh!
Note: This is just an indicative number, the actual maturity value will be provided in the PPF passbook that the account holder has.
A PPF interest rate of 7.1% can turn your Rs 110000 into a humongous Rs 7500000 if you do this. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
