Public Provident Fund Calculator: Rs 1 crore maturity amount possible. Know how long it will take | The Financial Express

Public Provident Fund (PPF) Calculator: Rs 1 crore maturity amount possible. Know how long it will take

Public Provident Fund (PPF) Calculator for Rs 1 crore: PPF is one such scheme that can return Rs 1 crore with guarantee.

Public Provident Fund (PPF) Calculator: Rs 1 crore maturity amount possible. Know how long it will take
PPF can make you crorepati in 25 years!

Public Provident Fund (PPF) Calculation: Savings and investment schemes that provide guaranteed returns are important at all times, more so in present times when stock markets are falling and there are fears of economic recession worldwide. PPF is one such scheme that not just provides guaranteed returns but also tax-saving benefits and an interest rate that has been historically higher than the bank fixed deposits.

The maximum deposit allowed under the scheme is Rs 1.5 lakh/year, which is also eligible for tax deduction under Section 80C. PPF investments are locked in for a period of 15 years with permission or premature withdrawal under specific terms and conditions (Read details here)

How to get Rs 1 crore with PPF

The current PPF interest rate is 7.1%. Assuming this interest rate remains in force for the full 15 years, you can get up to Rs 40,68,209 at the time of maturity by depositing Rs 1.5 lakh/year, which is equivalent to around Rs 411/day.

Also Read: NPS Calculator: How to get Rs 1.6 lakh/month pension

It is important to note here that the minimum scheme allowed under the scheme is Rs 500.

Under PPF scheme rules, you can extend the account in blocks of 5 years each after the compulsory 15-year maturity period. If you do so, your wealth will increase to Rs 66,58288 in 20 years at 7.1% interest and Rs 1.5 lakh yearly investment.

Source: Groww website

If you extend the account and continue investing for another 5 years, your wealth will grow to around Rs 1.03 crore in 25 years. In 30 years you will have around Rs 1.5 crore in the PPF account provided you continue investing Rs 1.5 lakh per year.

Also Read: Public Provident Fund deposits jump 134% in 9 years

Interestingly, you won’t have to pay any tax on the maturity amount withdrawn from the PPF account. There is also no tax on interest earned and deposits up to Rs 1.5 lakh under Section 80C provided you have not already exceeded the limit through other investments.

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