5 PPF tips to swear by: The Public Provident Fund is an ideal wealth accumulator for everyone. Not just because it provides full safety to the investor, but also because it keeps growing the money month after month and year after year, leaving the investor with a massive amount on maturity. Added to that is the fact that PPF interest rate is pretty high. Notably, an investor does not have to spend any time at all bothering about how to handle his PPF account. It simply keeps making money for the investor even as he sleeps. Since there are no uncertainties and complications involved in the PPF account, the investor knows exactly what he will get.
5 PPF tips to swear by:
Notably, a PPF account, if properly handled, can give a man a crorepati status. Even small amounts invested can do that. What is required of a PPF investor is that he does not forget about investing in this money-making tool.
The top 5 PPF tips to follow are:
1. Make sure the contribution to the PPF happens month after month without any breaks.
2. Do not withdraw any money from the PPF account till retirement or even later than that.
3. Make sure you start your PPF account as early in your life as possible
4. Try and make sure you take advantage of the income tax deduction allowed.
5. Plan your deposits to make sure to optimise interest accumulation
PPF tip: How to turn Rs 5000 into over Rs 1 crore
A few assumptions are in order here. First of all, we will assume that the PPF investor is a disciplined savings-oriented person. He will invest Rs 5000 every month in his PPF account. He will continue this journey, which he started at the age of 20, for the next 40 years. PPF interest rate is 7.10% currently. Also, the PPF account extension will be required to be done after the 15 year lockin period is over. This can be done in batches of 5 years indefinitely. With all of this done, the PPF account, by the time he reaches 60 years of age, will be Rs 1,31,63,864! Yes, he will be a crorepati, as per the PPF calculator.
Note: The sums mentioned here are estimates and the actual amounts will be mentioned in the PPF passbook.
5 PPF tips: If you are willing to invest Rs 5000 on a regular basis, you can get Rs 1 crore. PPF calculator crunches the numbers. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
