PPF is a long term investment plan which is proving to be a great investment option for investors. An employee can start investing in it and make a good corpus till retirement.
As per the PPF rules, an investor can start investing in his PPF account with as little as Rs 100. Its account can be opened in the nearest bank or any post office. For information, let us tell you that if a person invests continuously in PPF, then he can become a millionaire till maturity. Let us know in detail about how this is possible.
Rules of PPF account
If you have a PPF account then you need to invest at least Rs 500 in it. The investment period in this scheme is 15 years. In this scheme, an earning person can deposit together in a financial year or invest a maximum of Rs 1.50 lakh in a year.
Benefits of PPF account
PPF account follows EEE rule. That is, if a person invests Rs 1.5 lakh in a year, then he gets tax exemption. Apart from this, tax exemption is also available on its maturity. In this scheme, interest is given at the rate of 1.7 percent on investment, which is available in three months. The maturity of PPF account is 15 years. But investors can continue with the PPF account without withdrawing on maturity. The investor has the option to extend his PPF account for another 5 years even after maturity. That is, if you deposit Rs 417 daily, you can create a big fund for yourself.
Know immediately how to get lakhs of funds
Explain that if you start investing in PPF account at the age of 30 and increase your PPF account three times, then in such a situation the account holder will be able to invest in PPF account for 30 years. Suppose the investor invests Rs 1.50 lakh every year in the PPF account, then the total interest earned after 30 years of investment will be around Rs 1.54 crore. This calculation has been done on the basis that investors will get interest at the rate of 7.10 percent.
