If you are thinking of investing your money safely and with good returns, then the Public Provident Fund (PPF) scheme of State Bank of India (SBI) can be a great option for you. This is a government scheme, which not only gives good returns to investors but also provides tax benefits. Today we will tell you in detail about SBI’s PPF scheme and will also explain how you can increase your money by investing in this scheme.

SBI’s PPF scheme, what is this scheme?

SBI’s PPF scheme is a long-term investment scheme, in which the investor gets an annual interest rate of 7.1 percent. This scheme is completely safe as it is a government scheme, and there is a government guarantee on investing in it. Apart from this, the investor also gets the benefit of saving tax in the PPF scheme (SBI PPF Scheme). This scheme comes under section 80C of the Income Tax Act, which reduces your total taxable income.

Minimum investment in SBI PPF Scheme can be started from Rs 500 per year. At the same time, the maximum investment limit is Rs 1.5 lakh per year. The investment period of this scheme is 15 years, but you can extend it in blocks of 5-5 years. Apart from this, even after 15 years you get the facility of loan from your account, which makes this scheme even more attractive.

How to make Rs 13 lakh by investing in SBI PPF scheme?

Suppose you invest Rs 50,000 annually in SBI’s PPF Scheme, then in 15 years your total investment amount will be Rs 7,50,000. You will get interest at the rate of 7.1 percent on this. On completion of the investment period, you will get a total of Rs 13,56,070 after 15 years. Out of this, more than Rs 6 lakh will be in the form of interest only. This example shows that even by regular investment of small amounts, you can accumulate a large fund, which can become a means of security and financial independence for you in future. The special thing is that in this scheme your money is completely safe and you get a fixed return.

Other benefits of PPF scheme

Security PPF Scheme (SBI PPF Scheme) is secured by the guarantee of the Government of India. Moreover, you do not have to face any risk for investing in it. Tax Benefits Investing in PPF gives you tax exemption under section 80C in Income Tax, which reduces your taxable income. Loan Facility After opening a PPF account, you can take a loan from your account after 3 to 6 years. This loan is available at a low interest rate. Long term investment With a tenure of 15 years, it is a long term investment option, which gives you strong financial security. Moreover, you can extend it even after this period.

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The post SBI PPF Scheme: An excellent option for safe investment, invest Rs 50,000 to get a fund of up to Rs 13 lakh. Check Details first appeared on Rightsofemployees.com.

There are many benefits of investing in PPF and this scheme can be invested for a long time. At the same time, there are some eligibility criteria for investing in PPF, which should be taken care of. Along with this, who can invest in PPF and who cannot invest, should also be fully updated about this.

Tax savings Actually, to open a PPF account, a person has to fulfill certain qualifications. On opening the account, you can get tax benefits under section 80C of the Income Tax Act. On the other hand, the interest and returns received under PPF are not taxable under income tax.

Who can open PPF account?

Only Indian citizens living in the country can open a PPF account. Individuals above 18 years of age are eligible to open an account in PPF. There is no upper age limit for opening PPF account. At the same time, you can open only one PPF account in your name. Even if you fulfill all the eligibility criteria for a PPF account, you cannot open another account.

Who cannot open PPF account

NRIs and Hindu Undivided Families (HUF) are not allowed to open PPF accounts. Although there are some exceptions to this as well. If a resident Indian who has now become an NRI can continue with his existing PPF account till the tenure of that account is over. Although NRIs can keep their existing account till the maturity period of 15 years but after 15 years they cannot extend it beyond 5 years.

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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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