Senior citizens will get pension of more than ₹ 60,000 every month, invest in this scheme

Senior citizens Scheme: There are many schemes which have been prepared for retirement, Public Provident Fund (PPF) is also one of them. This scheme is very good for saving a lot of money in the long term. But have you ever thought that PPF can also provide you regular income? Even big experts will hardly be able to tell you this way of earning from PPF. Know how this will work.

How will this Jugaad work?

You can deposit a maximum of Rs 1.5 lakh in PPF in a year. Currently, this scheme is giving 7.1% interest and this interest increases on the basis of compounding. The maturity period of PPF is 15 years, but you have to extend it twice in blocks of 5 years each and continue investing. This means you have to continue investing Rs 1.5 lakh in it for 25 years.

A fund of Rs 1 crore will be accumulated in 25 years

When you invest Rs 1.5 lakh annually in PPF for 25 years, your total investment will be Rs 37,50,000 and you will get interest of Rs 65,58,015 at the rate of 7.1 percent. In this way, you will have a total of Rs 1,03,08,015 in your PPF account.

Keep the money deposited in the account

Even after 25 years, you do not have to withdraw this money from the account, you have to keep it deposited in the PPF account. If you do this, then whatever amount is deposited in your PPF account, you keep getting interest on it according to the calculation of PPF. You can withdraw the entire amount from this account whenever you want or you can make partial withdrawal once a year.

This is how you will arrange for an income of Rs 60,000

If you keep the entire Rs 1,03,08,015 deposited in the account, then at the rate of 7.1%, you will earn Rs 7,31,869 as interest. You just withdraw the interest amount annually. If Rs 7,31,869 is divided over 12 months, then it will be Rs 60,989. In this way, you can arrange Rs 60,989 every month. Also, a fund of Rs 1,03,08,015 will remain in your account.

Remember this in case of extension

Let us tell you that to extend the PPF account with contribution in blocks of 5 years each, you will have to submit an application to the bank or post office where you have the account. You will have to submit this application before the completion of 1 year from the date of maturity. Take special care of this to continue contributing to the PPF account for 25 years.

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