PPF holders can fund Rs 1 crore and earn more than ₹7,00,000 interest every year without any contribution.

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 adding a lot of money in the long term. You can deposit a minimum of 500 rupees and a maximum of 1.5 lakh rupees every year in PPF. But if you want, you can earn interest through PPF without contribution, that too in lakhs. Even big experts will hardly be able to tell you this way of earning interest on 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 deposit Rs 1.5 lakh annually 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.

Know what you have to do now

Even after 25 years, you do not have to withdraw this money from the 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. Since your account has matured, you can withdraw the entire amount from this account anytime or let it remain deposited and earn interest on the deposit.

Earn more than 7 lakh interest like this

If you keep the entire amount of Rs 1,03,08,015 in the account, then at the rate of 7.1%, you will earn Rs 7,31,869 as interest. In this way, you can earn lakhs of rupees every year as interest without any contribution. As long as this money is deposited, you will keep getting interest on it.

Remember this thing 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.

The post PPF holders can fund Rs 1 crore and earn more than ₹7,00,000 interest every year without any contribution. first appeared on informalnewz.

News