PPF Account Benefits: The government-run PPF scheme is quite popular among working people and along with good interest on investment, it also provides many types of extra benefits.
If you are planning to invest in a scheme in which your money will be safe and you will also get strong returns, then this news is special for you. Although many saving schemes are being run by the government, but the government scheme included in it is PPF, in which there is no fear of losing money at all and the interest is also tremendous. By depositing just Rs 405 daily in this scheme, you can become the owner of Rs 1 crore. Let us know about it in detail…
Strong interest of 7.1% in this government scheme:
PPF Scheme remains the first choice for investment due to its many features. Public Provident Fund i.e. PPF investments get more interest than fixed deposits (FD) in banks and post offices. At present, the government is giving interest on PPF at the rate of 7.1 percent per annum. Apart from this, compound interest is given on investment in this scheme and it is calculated on an annual basis. Interest is paid to the accounts of PPF account holders in March every year.
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You can start investing from Rs 500.
In this government saving scheme, you can invest at least Rs 500 annually and the maximum investment limit is Rs 1.5 lakh. If an investor deposits more than Rs 1.5 lakh in a financial year, then no interest is paid on the amount over and above the limit. You can invest in this scheme in lump sum or in installments. The most important thing is that the investment in PPF, the interest received and the amount received on maturity are completely tax free. In this, the investor has to invest for 15 years.
These amazing benefits along with tax exemption
Investment in PPF is also a great option for getting tax exemption. Under Section 80C of Income Tax, up to Rs 1.5 lakh tax exemption is available on deposits in it. Apart from this, talking about other benefits, you can continue investing even after the maturity of this scheme and can extend your account for 5-5 years. However, for account extension, you have to apply one year before the maturity ends.
The next benefit is that you can withdraw money from the PPF scheme before its maturity. According to the rules set for this, 50 percent of the deposit amount can be withdrawn in an emergency. But, for this it is necessary that your PPF account should be 6 years old. Apart from this, a loan can also be taken on it after running the PPF account for three years. Only 25 percent of the deposit amount can be taken as a loan on the PF account. 2 percent more interest has to be paid than the interest rate being received on this and a maximum of 36 months is given to repay the loan.
Always remember the 5th
. One of the special rules regarding investment in PPF is that if you are depositing money in PPF and do it on the 5th of the month, then you get an extra benefit. Actually, by doing this you will get interest for the whole month. But if you deposit in the PPF account by the 6th or the last date of that month, then the interest on it will be added from the next month. Interest is calculated on the minimum balance between the end of the 5th day and the last day of every month. Therefore, always remember the 5th during PPF investment.
How can one become a millionaire through PPF?
Now let us talk about how this government scheme proves to be a Crorepati Scheme for the investors, its calculation is very easy. Actually, you can become a millionaire by depositing little by little money in this government secured scheme. For this, you will have to save Rs 405 every day and if you calculate accordingly, you will add Rs 1,47,850 annually. Now if you deposit this amount continuously in the PPF account for 25 years, then based on the current interest rate of 7.1, the total fund becomes more than Rs 1 crore.
