PPF Account Benefits: The PPF scheme run by the government is very popular among the working people and in this, along with strong interest on investment, many types of extra benefits are also available.
If you are planning to invest in a scheme in which your money will be safe and you will also get strong returns, then this news is special for you. Although many saving schemes are being run by the government, but the government scheme included in it is PPF, in which there is no fear of losing money at all and the interest is also tremendous. By depositing just Rs 405 daily in this scheme, you can become the owner of Rs 1 crore. Let us know about it in detail…
Strong interest of 7.1% in this government scheme
PPF Scheme remains the first choice for investment due to its many features. Public Provident Fund i.e. PPF investments get more interest than fixed deposits (FD) in banks and post offices. At present, the government is giving interest on PPF at the rate of 7.1 percent per annum. Apart from this, compound interest is given on investment in this scheme and it is calculated on an annual basis. Interest is paid to the accounts of PPF account holders in March every year.
You can start investing from Rs 500
In this government saving scheme, you can invest a minimum of Rs 500 annually and the maximum investment limit is Rs 1.5 lakh. If an investor deposits more than Rs 1.5 lakh in a financial year, then no interest is paid on the amount exceeding the limit. You can invest in this scheme in lump sum or in installments. The most important thing is that the investment in PPF Investment, the interest received and the amount received on maturity is completely tax free. In this the investor has to invest for 15 years.
These amazing benefits along with tax exemption
Investing in PPF is also a great option to get tax exemption. In this, tax exemption of up to Rs 1.5 lakh is available on deposits under Section 80C of Income Tax. Apart from this, if we talk about other benefits, you can continue investing even after the maturity of this scheme and extend your account for 5 years. However, for account extension, you will have to apply one year before the end of maturity.
The next advantage is that you can withdraw money from PPF Scheme before completion of maturity i.e. in between. According to the rules set for this, 50 percent of the deposit amount can be withdrawn in case of emergency. But, for this it is necessary that your PPF account should be open for 6 years. Apart from this, after operating the PPF account for three years, a loan can also be taken on it. You can take loan only for 25 percent of the amount deposited in PF account. On this, 2 percent more interest has to be paid than the interest rate available on it and a maximum time of 36 months is given to repay the loan.
Always remember the 5th
Among the rules that have been set regarding investment in PPF, one special one is that if you are depositing money in PPF and do it on the 5th of the month, then you get extra benefit. Actually, by doing this you will get interest for that entire month. But if you deposit in PPF account till 6th or last date of that month, then interest on it will be added from the next month. Interest is calculated on the minimum balance between the end of the 5th day and the last day of every month. Therefore, always remember the 5th during PPF investment.
How can one become a millionaire through PPF?
Now let us talk about how this government scheme proves to be a Crorepati Scheme for the investors, its calculation is very easy. Actually, you can become a millionaire by depositing little by little money in this government secured scheme. For this, you will have to save Rs 405 every day and if you calculate accordingly, you will add Rs 1,47,850 annually. Now if you deposit this amount continuously in PPF account for 25 years, then based on the current interest rate of 7.1, the total fund becomes more than Rs 1 crore.
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