At the same time, many schemes are being run by the government to benefit the employed people also. One of these is Public Provident Fund (PPF). However, now an important update has come out from the government regarding PPF, about which people investing in PPF should know.

PPF scheme

Actually, PPF is a savings scheme run by the Central Government. Through this saving scheme, people are encouraged by the government to invest and save. Apart from this, people also get tax benefits in this scheme and people can also save tax through this scheme.

Interest on PPF

At the same time, interest on this scheme is provided by the government. This interest is also reviewed by the government every quarter. Recently, the interest paid on PPF has been reviewed by the government. In such a situation, there has been no change in the interest rate given on PPF and it has been kept stable. In such a situation, interest of 7.1 percent will be given on PPF in the quarter of October-December 2023 also.

PPF amount

PPF is a savings and investment scheme. Its maturity is 15 years. Through this scheme, people can invest a maximum of Rs 1.5 lakh in a financial year. Also, in this scheme it is necessary to invest a minimum of Rs 500 in a financial year. Apart from this, people can avail tax benefits under Section 80C of the Income Tax Act through this scheme.

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Make long term investment like this

Public Provident Fund is a long term investment, which gives you good returns at the right time. You get very good returns in this. You can invest up to Rs 1.5 lakh in PPF in a year, ie Rs 12,500 a month. So let’s know how much you have to invest every month and for how long to become a millionaire.

7.1 percent interest on PPF

At present, the government pays an annual interest of 7.1 percent on the PPF account. Investment is made in this for 15 years. Accordingly, the total value of the investment of Rs 12500 per month will be Rs 40,68,209 after 15 years. The total investment in this is Rs 22.5 lakh and the interest is Rs 18,18,209.

How will the fund of one crore rupees

Case No. 1

1. You are 30 years old now and have started investing in PPF.
2. After depositing Rs 12500 every month in PPF for 15 years, you will have Rs 40,68,209.
3. Now keep increasing this amount in PPF for a period of 5-5 years.
4. After investing 5 more years after 15 years i.e. after 20 years this amount will be = Rs
66,58,288

So this is how you will become a millionaire

That is, if you invest Rs 12500 every month in PPF at the age of 30, then you would have become a millionaire after 25 years, ie at the age of 55. Please tell that the maturity of PPF account is 15 years. If this account is to be extended for 15 years, then this account can be extended for the next five years according to five years.

Case No. 2

If you want to invest a little less amount in PPF instead of Rs 12500, but want to become a millionaire at the age of 55, then you have to start a little earlier.

1. You started putting Rs 10,000 a month in PPF account at the age of 25.
2. According to 7.1 percent, after 15 years you will have a total value of – Rs 32,54,567.
3. Now extend it again for 5 years, then after 20 years the total value will be- Rs.53,26,631.
4. Carry it forward again for 5 years, the total value after 25 years will be – Rs
82,46,412
Will become a millionaire at the age of one year.

case number 3

If you deposit only Rs 7500 per month in PPF instead of Rs 10,000, you will still become a millionaire by the age of 55, but you will have to start investing at the age of 20.

1. If you keep depositing Rs 7500 in PPF for 15 years at 7.1% interest, then the total value will be –
Rs 24,40,926
If further extended i.e. after 25 years this amount will be – Rs 61,84,809
4. If extended further for 5 years, after 30 years this amount will increase to – Rs 92,70,546
5. If 5 more years continue the investment, 35 years After that the amount will be – Rs 1,36,18,714
6. That is, when you will be 55 years old, you will have an amount of more than Rs 1.25 crore. Remember, the trick to becoming a millionaire is to take advantage of PPF compounding, start investing early and keep investing with patience.

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According to Section 80C of Income Tax, a PPF account holder can get this tax exemption. However, a maximum exemption of Rs 1.50 lakh will be available annually on a financial year. PPF is among some of the lowest risk schemes offering better returns to the investors.

Government pays 7.1 percent interest on PPF

The government is giving a return of 7.1 per cent on PPF. The interest rate of PPF is subject to change every quarter as per the instructions of the government. That is, after every three months, the government decides the interest received on the savings scheme scheme. If we look at its past trend, then the interest rates on PPF are going to remain at 7.1 per cent or above.

This is how you can become a millionaire

At the age of 25, if you start investing Rs 5000 every month in PPF, then your annual investment will be Rs 60,000. You will earn an interest of Rs 7,27,284 in 15 years at 7.1% interest rate. Your total investment in 15 years will be Rs 9,00,000. Maturity of 15 years means when you will be 40 years old then you will get Rs 16,27,284.

This is how PPF can make a millionaire

However, if you maintain this investment of Rs 5,000 per month for 37 years, you will get a return of Rs 83,27,232 on a total investment of Rs 22,20,000. You will get Rs 1,05,47,232 on maturity. As mentioned earlier, the maximum maturity period of PPF is 15 years. If you want to extend it up to 37 years, you need to fill Form 16-H, Renewal Form at the end of 15th, 20th, 25th, 30th year. Your PPF account will be renewed after this.

Many benefits are available on PPF

The government decides the rate of interest on PPF. Up to Rs 1.5 lakh can be invested in this scheme. Investors investing in PPF get tax benefits in three ways. Apart from the benefit of tax deduction on the money invested in PPF, there is no tax on the interest and maturity amount.

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