Invest ₹500 Monthly in PPF to Become a Lakhpati: 7.1% Interest & Tax Benefits Explained
Public Provident Fund (PPF): A Secure Investment Option
If you’re considering investing where your money is safe and you can get assured and good returns, the Public Provident Fund (PPF) scheme may be suitable for you. Currently, it offers an annual interest rate of 7.1%.
Becoming a Crorepati with Simple Savings
By depositing just 500 rupees every month, you can easily become a crorepati. Additionally, you can also benefit from tax exemptions by investing in this scheme. Along with savings, this scheme can help you generate income.
Opening an Account with 500 Rupees
To open a PPF account, a minimum amount of 500 rupees is required. A deposit of at least 500 rupees annually is necessary to maintain the account, with a maximum limit of 1.5 lakh rupees per financial year.
Runs for a Period of 15 Years
A PPF account matures in 15 years. After maturity, you can withdraw the entire amount or extend it in blocks of 5 years each, with full maturity achieved after one year of extension if you do not need immediate funds.
Lock-in Period of 5 Years
After opening a PPF account, you cannot withdraw funds for the first 5 years. After this period is complete, you can withdraw funds by filling out Form 2. If you withdraw money before 15 years, a 1% penalty is applied on the amount withdrawn.
Accumulate 1.02 Crore Rupees by Investing 12,500 Rupees Monthly
If you aim to create a fund of 1 crore rupees through this scheme, you will need to invest 12,500 rupees monthly for 25 years. If you invest 10,000 rupees monthly, you will approximately receive 81.76 lakh rupees after 25 years. Learn more about how much benefit you can get by investing in it.
Benefit of Tax Exemption
Investment in PPF falls under the EEE category, meaning you get tax exemption on the entire investment amount. Under Section 80C of the Income Tax Act, you can get tax exemption on investments up to 1.5 lakh rupees annually. Additionally, interest earned and the amount received at maturity are tax-free.
Who Can Open a PPF Account?
Any individual can open this account in any post office or bank in their own name. Additionally, a minor through a guardian can also open an account.
