PPF can make your money dreams come true! If you are thinking of having a huge sum of money by investing every month, then know that the Public Provident Fund is one of the best tools available to the public. And it is all powered by the PPF interest rate of 7.1%. Here we do a bit of number crunching with the aid of the PPF calculator and reveal to you what the estimated value can be derived from investing here.
The PPF offers two things that most other investments do not. One of them is safety. Yes, it is a scheme guaranteed by the government. That means both the invested amount and the interest rate available on it will be released to the PPF account holder on maturity. The second important benefit to be derived form the PPF account is that it is fully tax free. You will not have to pay any income tax on the money you earn.
In comparison to PPF, other money-making investment opportunities carry a lot of risk and they are also taxable. And that nullifies, to an extent, the high interest rate they offer.
For those starting their investment journey, the PPF is the ideal tool where they learn the basics and then venture out into other areas like bank fixed deposits, stock markets or mutual funds.
So, what kind of PPF investment will deliver some eye-ball grabbing profit? Let us say you have Rs 5000 to invest every month in your PPF account. You will keep on investing this amount month-after-month and year-after-year for 15 years. the total amount you would have deposited in your PPF account would be Rs 900000. And what would the high PPF interest rate deliver on maturity? A massive sum of Rs 15,77,841.
The PPF interest earned by the account holder is Rs 677840.
Do note that PPF has a lock-in period of 15 years. And to make sure you do not suffer any setbacks, do not withdraw any money from the PPF account and do not stop investing. You can eve extend the PPF account by 5 years indefinitely thereafter, if you wish to continue your account.
Check PPF table below for a brief look at the highlights:
PPF Parameters
Details
Investment Amount per Month
Rs 5000
Total Investment Period
15 years
Total Amount Invested
Rs 9,00,000
PPF Interest Rate
7.1% per annum
Maturity Amount
Rs 15,77,841
Interest Earned
Rs 6,77,841
Taxation
Fully tax-free
Lock-in Period
15 years
Additional Extension
Extendable in blocks of 5 years indefinitely
Government Guarantee
Principal and interest guaranteed
Note: This is an estimation of value and the real amount will be available on the PPF passbook.
PPF calculator shows that a regular investment of Rs 5000 can give over Rs 15 lakh in maturity value. This is courtesy the high PPF interest rate. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
