#NewDelhi: Post Office Public Provident Fund or PPF is a very safe option for those who want to invest money in a safe place to save for future needs. Investing in this project can lead to becoming a millionaire at the end of the term. This is a great way to put together a great deal of money through long-term investments. The reason why investing in PPF is less risky is because the post office interest rate is fixed by the government and is not affected by market fluctuations. These rates are reviewed on a quarterly basis. At present, interest is paid at the rate of 8.1% per annum on the Post Office Public Provident Fund.
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Public Provident Fund (PPF) account can be opened at Post Office or any bank. This account can be opened for only Rs.500 / – and up to Rs.1.50 lakh per annum can be deposited. The term of a PPF account can be up to 15 years. However, after 15 years, the term can be extended for another 5 years.
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If Rs 12,500 per month is deposited in the PPF account at Rs 12,500 for 15 years, the total amount at the end of the term will be Rs 40.7 lakh. The 15-year investment of the investor is Tk 22.50 lakh and the interest income is Tk 18.18 lakh. This is calculated as a term of 15 years at an annual interest rate of 7.1%. If the interest rate changes, the amount of money will also change after 15 years of maturity. It is worth mentioning here that the interest rate in Public Provident Fund is calculated at an annual compounding rate.
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How to become a millionaire through PPF project?
If the term of the scheme can be extended twice to 5 years after the expiry of 15 years, the income can be up to crores of rupees. At the end of the term after 25 years, a total of Tk 1.03 crore will be credited to the investor’s account, out of which the total investment is Tk 36.50 lakh and the interest is Tk 85.58 lakh. Note that to extend the term of a Public Provident Fund account, one has to apply one year before maturity.
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