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PPF calculator: How to become a crorepati with a Public Provident Fund account


PPF Calculator: The Public Provident Fund (PPF) is a popular long-term savings scheme in India. Currently, it adds an interest rate of 7.1% with effect from 1 April 2023. In recent years, the government has not raised this restriction. Investors can open a PPF account in any nearby bank or post office. However, at least one must be deposited 500 per annum in one’s PPF account. The maximum amount you can deposit in a PPF account is set at Rs. 1.5 lakh. The PPF account takes 15 years to mature.

How your PPF account can make you crorepati

It would be difficult to make a crore with moderate investment. But Personal Finance experts say that PPF can do this trick with the power of compounding.

Individuals can extend their PPF account in blocks of 5 years for an unlimited number of times.”While extending your PPF account, you should choose an extension with an investment option as it would enable you to earn interest on both PPF maturities. In simple words, one can accumulate more than a crore in one’s PPF account at the time of retirement,” said Kartik Jhauri, Director of wealth at Transcend Consultants.

PPF calculator

If an earning person doubles his PPF account after completion of 15 years, he/she will be able to accumulate huge wealth and become a crorepati in 25 years. Let’s see how. The PPF account holder is investing 1.50 lakh per annum in one PPF account, the monthly payment can also be divided into installments of Rs 8333.3, then after 25 years of investment, the maturity amount of one PPF would be 1,03,08,015 or approx 1.03 crore, assuming the PPF interest rate for the entire period at 7.10 percent per annum as per the PPF calculator (screenshot below) The invested value is 37,50,000, and the interest is more 65,58,015.

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Photo: Courtesy Groww (Photo: Courtesy Groww)

PPF taxation rules

PPF account comes under the EEE category where one can claim income tax benefits under Section 80C on one’s annual deposit up to 1.5 lakh. Apart from that, the maturity amount of one’s PPF is also tax free.

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Updated: 16 September 2023, 02:46 PM IST

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