PPF Calculator: Your Public Provident Fund Account Can Make You a Millionaire

According to tax and investment experts, the PPF account comes under the EEE category where the individual can claim income tax benefits under Section 80C on their annual deposits. 1.5 lakhs. Apart from this, tax exemption is also available on PPF maturity amount. The PPF interest rate is 7.1 per cent payable on a quarterly basis and if a person maintains investment discipline, he/she can retire as a millionaire at the time of maturity of the PPF account.

Talking about how one can get maximum returns from PPF account, SEBI registered tax and investment expert Jitendra Solanki said, “The maturity period of PPF account is 15 years. Multiple times. This allows an investor to withdraw the PPF maturity amount. This enables one to continue with this risk-free investment option without investment.While extending one’s PPF account for the next 5 years, one has the option of extension without investment or extension without investment.

Karthik Jhaveri, Wealth Director, Transcend Consultants advises the PPF account holder to expand his account with investment option, saying, “When you are expanding your PPF account, you should choose expansion with investment option because This will enable you to receive interest on both the PPF maturity amount and new investments. If a person does this, he/she can expect to retire as a millionaire. In simple words, one can increase his/her savings at the time of retirement. Can deposit more than one crore in PPF account.

ppf calculator

if one earnings If a person opens a PPF account at the age of 30 years and expands his PPF account three times, then in that case the PPF account holder will be able to invest in the PPF account for 30 years. Suppose the investor invests 1.50 lakh per year in one’s PPF account, then after 30 years of investment, his PPF maturity amount will be 1,54,50,911 or thereabouts 1.54 crore, assuming the PPF interest rate to be flat at 7.10 per cent per annum for the entire tenure.

According to the PPF calculator, investors in these 30 years Investment is only 45 lakhs ( 1.5 lakh x 30), while the PPF interest earned is 1,09,50,911.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.