PPF maturity calculator: Earn ₹1 crore 74 lakh in interest, get ₹2.26 crore on maturity: Know the easy formula

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PPF maturity calculator: Most people want to become crorepatis and are looking for a place to invest their money where there is huge profit. But, if you want to know how much will be the income from the investment and also want to stay out of the scope of income tax, then Public Provident Fund (PPF) removes this worry.

Investment in the scheme gives good returns (PPF maturity calculator) and tax saving option. If you are doing retirement planning or want to earn good income from investment in the long term, then you can choose this scheme. The scheme is more popular by the name of PPF.

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Why is PPF considered the best option?

Public Provident Fund (PPF) is most popular because the money deposited in it, the interest received and the amount received on maturity (PPF Maturity Calculator) are completely tax free. This means that it is kept in the EEE category. EEE means Exempt. There is an option to claim tax exemption on deposits every year. No tax has to be paid on the interest received every year. Once the account matures, the entire amount will be tax free.

Who can invest in PPF?

Any citizen of the country can invest in Small Savings Scheme (PPF). It can be opened in post office or any bank. A minimum of Rs 500 and a maximum of Rs 1,50,000 can be invested every financial year. Interest is calculated on an annual basis. However, interest is decided on a quarterly basis. Currently, 7.1% interest is being received on PPF.

The maturity period is 15 years. There is no facility to open a joint account in the scheme. However, a nominee can be made. There is also no option to open a PPF account in the name of HUF. In the case of children, the name of the guardian is included in the PPF account. But, it remains valid only till the age of 18.

How can PPF really make you a crorepati? ( Can PPF make you a crorepati? )

PPF is a scheme in which it is easy to become a millionaire. For this, regular investment is required. Suppose you are 25 years old and you have started PPF. If you deposit Rs 1,50,000 (maximum limit) in the account between 1st to 5th at the beginning of the financial year, then at the beginning of the next financial year, Rs 10,650 will be deposited from interest only. Meaning, on the first day of the next financial year, your balance will be Rs 1,60,650.

By doing the same again next year, the account balance will be Rs 3,10,650. Because, Rs 1,50,000 will be deposited again and then interest will be received on the entire amount. This time the interest amount will be Rs 22,056. Because, the formula of compound interest works here. Now suppose 15 years of PPF maturity have been completed, then there will be Rs 40,68,209 in your account. In this, the total deposit amount will be Rs 22,50,000 and Rs 18,18,209 will be earned only from interest.

If you want to become a Crorepati then invest even after maturity

PPF was started at the age of 25. On maturity of 15 years, at the age of 40, there is an amount of more than 40 lakh rupees in hand. But if the planning is for the long term, then the money will grow faster. After maturity in PPF, the account can be extended by 5-5 year extensions. If the investor extends the PPF account for 5 years, then the total amount will become Rs 66,58,288 by the age of 45. In this, the investment will be Rs 30,00,000 and the income from interest will be Rs 36,58,288.

At what age will you become a Crorepati?

The goal of becoming a millionaire will now be achieved. The PPF account has to be extended once again for another 5 years, i.e. till 25 years. Again, an annual investment of Rs. 1,50,000 will have to be made. At the age of 50, a total of Rs. 1,03,08,014 will be deposited in the PPF account. The investment in this will reach Rs. 37,50,000 and the interest will reach Rs. 65,58,015.

Interest earnings will exceed Rs 1 crore ( How does PPF generate high returns? )

Another feature of PPF is that you can do a 5-year extension any number of times. Now if the account is extended for another 5 years, then at the age of 55 you will have Rs 1 crore 54 lakh 50 thousand 910. The investment in this will be only Rs 45,00,000, but the interest income will exceed Rs 1 crore and the total income will be Rs 1,09,50,911.

Investment for 35 years will give 2 crore 26 lakh 97 thousand 857 rupees

If you have invested in it for retirement, then PPF will have to be extended for the last 5 years. This means that the investment will continue for a total of 35 years. In this case, maturity will be at the age of 60. In this case, the total deposit amount in the PPF account will be Rs 2 crore 26 lakh 97 thousand 857. The total investment in this will be Rs 52,50,000, while the interest income will be Rs 1 crore 74 lakh 47 thousand 857.

If you want to double your money then invest like this

When you retire at the age of 60, there will be no tax on the large amount of more than 2 crores deposited in PPF. Usually, if such a large amount is earned from somewhere else, then a hefty tax will have to be paid on it. If both husband and wife run the PPF account together for 35 years, then the total balance of both will be 4 crore 53 lakh 95 thousand 714 rupees.

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