PPF Investment: Public Provident Fund is a better option for long-term investment. For the salaried class, a PPF account with a maturity of 15 years is considered a better way to raise future funds. The special thing about this account is that it can be extended for 5-5 years even after maturity (PPF Maturity). In such a situation, if you join this scheme even at the age of 30 to 35 years, then in 25 years you can become a millionaire through PPF.
Financial sector experts also suggest that if you do not need the fund at the maturity of 15 years, then it should be extended further. The special thing is that you can also take advantage of tax exemption from the PPF account. The interest earned and maturity proceeds are also tax-free.
How to get the benefit of PPF?
The maturity period of the PPF account is 15 years. This account is getting 7.1 percent compound interest annually. In this, you can deposit a maximum of 1.5 lakh rupees in a year. In this context, on the maturity of 25 years, you can create a maximum fund of Rs 62 lakh (PPF Maturity Benefits).
PPF Investment: Know-How to become a millionaire with a PPF calculator
If you put 250 rupees daily in the PPF account, then this amount becomes 7500 rupees in a month. In this way, in a year, this amount reaches Rs 90,000. If you invest in PPF account for 25 years, then by this period you must have deposited Rs 22.50 lakh. With this, on completion of 25 years of maturity, you get a huge amount of Rs 61,84,809. In this Rs 39,34,809 is of interest.
Amount up to Rs 1.50 lakh can be deposited in the PPF account
A maximum of Rs 1.50 lakh can be deposited in a PPF account in a financial year. This maximum investment can also be done in 12 installments. It is necessary to invest at least Rs 500 in this. The special thing is that a PPF account can be started in the name of a child below the age of 10 years. However, the guardian has to maintain the account till he attains the majority.