The Public Provident Fund (PPF) offers a wide range of plans to those who are hoping to secure their financial future after their retirement. Now, you can invest a small amount of money from your salary and earn crores upon your retirement age.
The PPF scheme offered in India offers a large sum of return upon investment of a small percentage of money. For a long-term investment of a small amount of money and getting a huge return at retirement, you need to invest around Rs 1.5 lakh per year, which comes up to Rs 12,500 per month in your PPF account.
The government currently offers 7.1 percent interest per year on a PPF account, and the investment period is around 15 years. If one invests Rs 12,500 per month for 15 years in their PPF account, their total investment will be over Rs 40,68,000 and their interest will be around Rs 18,18,209.
Here is all you need to know about this PPF scheme-
- If you start your investment at the age of 30, and you keep the scheme going for 15 years, your investment during this period will be a total of Rs 40,68,208. If you want to get further returns on your investment, don’t accept this money.
- If you keep the scheme going for the next 5 years, your investment amount will increase up to Rs 68,58,288. After reaching this amount, extend the investment period for another 5 years, resulting in a total of Rs 1,03,08,015 after 25 years.
- You can become also crorepati at the age of 55 if you start this scheme at the age of 25, with the initial monthly investment of Rs 10,000. The entire value of money will be over Rs 32,54,567 after a total of 15 years. After two extensions of 5 years, your total amount will be around Rs 82,46,412 after 25 years.
- This means, that after extending your scheme for another 10 years, will be Rs 1,36,18,714 after 35 years, making you a crorepati at the age of 55.
The main thing you need to focus on while investing in a Public Provident Fund account is to make sure that you start early, at the age of 25 to 30 years. Through this scheme, you can retire at the age of 55 with a hefty amount of money.
