New Delhi18 minutes ago
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The government has not changed the interest rates of small savings schemes for July-September (Q2FY26). That is, you will continue to get the same interest as before. If you want to create a smart fund for retirement, then this public provident fund i.e. PPF can be a great option for you.
With 15+5+5 strategy of investment in PPF, you can make a fund of 1.03 crore in 25 years. You can make a pension of 61 thousand rupees every month from interest on this amount. PPF is one of the most reliable and safe investment plans.
Investment with a guaranteed interest of 7.1% in PPF is completely risk free. This interest is compound every year, that is, interest is received on your money and then interest is also added to that interest.
This strength of compounding makes PPF so special. In this, the amount received on interest and maturity is tax-free. In this scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year.
15+5+5 formulas will be made 1.03 crore from 1.5 lakh investment annually, 65 lakhs will be made from interest
The 15+5+5 formula of PPF is a kind of investment plan, in which you allow your money to increase for 25 years.
- Ppf The original period of the scheme is 15 years. But when you complete 15 years, you have two options. First, you take out all your money or take two extensions of 5-5 years. You can give up your money even without investing in these 10 years. If you continue investing, then a big amount will be made.
- The first 15 years deposit 1.5 lakh rupees every year. In this way, in 15 years (15 x 1.5 lakh) will invest 22.5 lakhs. After 15 years with an interest rate of 7.1%, the fund becomes 40.68 lakhs. This makes 18.18 lakh rupees from interest.
Take 5-5 years of extension after 15 years
- Now if you leave it without investing the next 5 years instead of removing it, then a fund of 57.32 lakhs will be made on completion of 20 years. 16.64 lakh rupees will be added to interest.
- After 20 years, if you take a 5 -year extension again, a fund of 80.77 lakhs will be made in 25 years. 23.45 lakhs are connected to interest.
- If you continue investing 1.5 lakhs every year during these 10 years of extension, then 1.03 crore will be made with a total investment of 37.5 lakh in 25 years. That is, there will be an income of Rs 65.58 lakh from interest.
How to get a monthly income of Rs 61,000? On completion of 25 years, you Ppf You can continue funds worth Rs 1.03 crore in the account. You will continue to get 7.1% interest every year on this amount. About 7.31 lakh rupees will be made every year at 7.1% annual interest. That is, about 60,941 rupees (7.31 lakh ÷ 12) will be available every month. The special thing is that your original fund will remain 1.03 crores as the same. Your regular earnings will begin.
Investment can invest 1.5 lakh in a year, from interest to maturity tax free
- You can get tax exemption under Section 80C of the Income Tax Act on investment of up to Rs 1.5 lakh every year.
- The amount of interest and maturity received on this is also tax-free. Tax exemption on investment, interest, and maturity trio.
- You can start 500 in PPF. The scheme is fit for salary persons, housewives, small businessmen, everyone.
- The lock-in period in PPF is 15 years old. Before this, you cannot withdraw all money. However, withdrawal can be done from the 7th year. But not more than 50%.
- If you want to continue the account after 15 years, then it has to be extended every 5 years. You can increase it with without investment or new investment.
- Can not invest more than 1.5 lakhs every year. If you do more than this, then there will be no interest and tax rebate on it.
Who can open PPF account? Any person can open this account in a post office or bank in his name. Apart from this, an account can be opened by another person from the minor.
