PPF: You can earn interest of ₹2,88,842 every year on PPF without spending even a single rupee, know how

Public Provident Fund i.e. PPF is a scheme through which you can earn a lot of money in the long term. That is why it is a part of most people’s portfolio. In this scheme, you can deposit a minimum of Rs 500 and a maximum of Rs 1.5 lakh in a year. You are given interest at the rate of 7.1% on this. But if you are told that without investing even 1 rupee in PPF, you can earn interest of ₹ 2,88,842 from it, will you believe it? Maybe not, but this is true. Very few people know about this. Know how to earn lakhs.

How will this miracle happen?

To earn interest without contribution from PPF, you will first have to invest in it continuously for 15 years. When the scheme matures, you will get a chance to earn interest from it for free.

Know how much you will have to invest

To earn ₹2,88,842 in free interest per year, you will have to deposit ₹1.5 per annum in PPF for 15 years. In this way, the total investment in 15 years will be ₹22,50,000. At the rate of 7.1 percent, you will get ₹18,18,209 as interest and a fund of ₹40,68,209 will be created on maturity.

Know what you have to do now

After investing continuously for 15 years, your scheme will mature but you do not have to withdraw this amount. If you do this, then whatever amount is deposited in your PPF account, you keep getting interest according to the calculation of PPF. This is called PPF Extension Without Contribution. There is no need for any application to get extension without contribution, if you do not withdraw the money after maturity, then it gets applied automatically. You can withdraw the entire amount from such an account anytime or let it remain deposited and earn interest on the deposit.

This is how you will earn lakhs from interest

After depositing Rs 1.5 annually for 15 years, the maturity amount of Rs 40,68,209 will be left in the account. If you keep it in the account, you will get annual interest on it as per the current interest rate. If we calculate it as per the current interest rate of 7.1%, then this interest will be Rs 2,88,842. In this way, you can earn lakhs of rupees every year on interest without contribution. As long as this money is deposited, you will keep getting interest on it.

Option of extension with contribution

There is also an option of extension with contribution in PPF. But for this you have to apply for account extension before completion of 1 year from the date of maturity. On extension with contribution, the account is extended for 5 years directly. You can get extension in PPF as many times as you want in blocks of 5 years each.

The post PPF: You can earn interest of ₹2,88,842 every year on PPF without spending even a single rupee, know how first appeared on informalnewz.

News