Setting aside a small amount from the monthly salary and placing it in suitable investment plans can be the key to a bright future for everyone. In such a safe and long-term investment plan, the Public Provident Fund (PPF) of the public sector's post office holds a special place. By regularly investing in PPF, your money can earn good returns, and long-term plans create the possibility of becoming a millionaire.
Although the maturity period of PPF is 15 years, you can extend this term three times for five years each, totaling 25 years. Currently, this scheme offers an annual interest rate of 7.1%, which shows significant growth on investment. Under Income Tax Section 80C, you also get a tax exemption on an investment of 1.5 lakh rupees, which makes this scheme more beneficial.
If you invest 1.5 lakh rupees every year for the first 15 years, a total of 22.5 lakh rupees will be accumulated during this period. You will earn approximately 18.18 lakh rupees in interest. Then, in the next five years, at the final stage of 20 years, the total accumulated amount with interest will be around 57.32 lakh rupees. If you invest for 25 years, this amount reaches up to 80.77 lakh rupees, and with an additional 10 years of investment, it can grow to 1.03 crore rupees.
Even after 25 years of maturity, the interest from the accumulated amount can provide you with an estimated monthly income of 61 thousand rupees. Therefore, investing regularly and wisely in PPF proves to be a good way to achieve long-term financial stability and financial independence.