Okay, so you want to make money and plenty of it and that too in quick time. With a Public Provident Fund (PPF) that is possible, but you got to give it time. It will help you in times of trouble as well as later in life. Now, if you have a Rs 50000 to invest and do not want to take any risk at all, you must invest in PPF. In fact, PPF may well be the best way to invest and save money for most everyone. Just set your money goals, set aside a sum to invest, and be focused and disciplined throughout. Here we show you how the PPF calculator will turn that sum of yours into Rs 22 lakh.
We will take certain things for granted that must be followed by the PPF account holder. First of all, is the fact that the investment will be Rs 50000 every year. The PPF account holder must go to the bank and deposit this sum in his PPF account in the beginning of April every year as that way, the best interest can be earned.
Another important aspect that the PPF calculator indicates is that the investor must keep investing this amount year after year without a break. The time period is 20 years. Notably, PPF account reaches maturity after 15 years and it has to be extended by 5 years. The extension by 5 years can be done multiple times thereafter.
The PPF interest rate that the account holder can look at receiving currently is 7.1%. Do note that this can be subject to change going forward. The government can change it every quarter.
The PPF Calculator break up that will be taken into account:
PPF investment (yearly): Rs 50000
Time period : 20 years
PPF interest rate: 7.1%
After the number crunching by the PPF calculator, know that you will get the massive sum of Rs 22,19,429! And what is even more astounding is that the PPF account holder invested only Rs 10,00,000 lakh. PPF gave him a total interest of Rs 12,19,429 over and above that.
PPF investment breakup
PPF maturity amount: Rs 22.19,429
Total PPF investment: Rs 10,00,000
Total PPF interest received: Rs 12,19,429.
That substantial amount can keep earning big interest for the PPF account holder to live off later in life or for buying a big asset.
Looking at these numbers, if you do not have a PPF account yet, you should go and open it today itself. It can be done with most banks.
PPF calculator shows you in a simple step by step manner how to transform your Rs 50000 initial investment into over Rs 22,00,000. This is courtesy PPF interest rate and magic of compounding. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
