Deposit your work / money in PPF with this trick, become the owner of 1.5 crore, know the calculation.
The Public Provident Fund is a long-term investment. It is a reliable investment option.
This is how to invest in PPF
There will be more benefits
Learn in full detail.
PPF is one of the popular options for investors. In which you get a good return. It also saves taxes. But despite being so popular, people often do not take full advantage of it. However, if you find out how the interest on PPF is calculated and how you can get maximum interest, your amount can increase a lot.
Interest rates on PPF have come down over the years
About a year and a half ago today, on March 30, 2020, the government slashed interest rates on small savings schemes. The interest rate on PPF is also 7.1 per cent. Let me tell you that small savings plans and interest earned on PPF are reviewed every three months. These interest rates have a big impact on the rate of inflation.
This will create a fund of Rs 1.5 crore
You can invest a maximum of Rs 1.50 lakh in a year in a PPF account. Suppose you invest Rs 12,500 per month in a PPF account. After maturity in 15 years you can advance your PPF account in 5-5 year block. After 30 years, the total fund of your PPF account will be more than 1.5 crores. Your investment in it is Rs 45 lakh and the income from interest is at least Rs1.09 crore.
Investing can start in 25 years
Let me tell you that the sooner you start investing in this government scheme, the sooner you will reap the benefits. Suppose you are 25 years old and you have invested Rs 1.5 lakh annually in PPF. So you can become a millionaire at the age of 55 i.e. about 5 years before retirement.
How is interest calculated on PPF?
Interest is calculated every month on PPF. But that account is credited at the end of the financial year. This means that any interest you earn each month is credited to your PPF account on March 31st. However, there is no fixed date for depositing money in the PPF account. You can deposit money in PPF every month, three months, six months and year.
Ways to get more interest on PPF
Interest is calculated this way. Interest on PPF is calculated on the amount present in the account from 1st to 5th of every month. This means that if you put money in a PPF account till the 5th of a month, you will get interest on that money in the same month. But if you deposit money after 5th date i.e. suppose the money is deposited on 6th date then the interest on the amount deposited will be paid in a different month.
For example
Suppose you deposited Rs 50,000 in your account on April 5. As on March 31, you already have Rs 10 lakh in your account. From April 5 to April 30, the total amount in your PPF account is Rs. 10,50,000, which is the minimum balance. So it had a monthly interest of 7.1 per cent. (7.1% / 12 X 1050000) = Rs. 6212.00
