How to become crorepati by PPF investment | PPF calculator, interest rate, limit

PPF account: The Public Provident Fund (PPF) is a long-term saving and investment scheme. PPF is considered to be one of the most popular schemes among the both -- salaried and non-salaried people, thanks to the safety and guaranteed returns that it promises. 

PPF is used by investors to create long-term wealth. The interest is credited to the account at the end of each financial year.  

The PPF falls under the Exempt-Exempt-Exempt (EEE) category. PPF account holders can earn tax-free interest. This makes the maturity amount tax-exempt when you exit at the 15th year or later.  

Salaried employees can claim for tax waiver under section 80c of the Income Tax Act, 1961.

The PFF accounts can be opened in the post office or bank. In the PPF account, the account holder is allowed to take 1 withdrawal in a financial year after 5 years of the scheme excluding the year of the account opening. The lock-in period of 15 years.    

PPF account limit  

In PPF account a minimum investment of Rs 500 in a financial year is allowed under the PPF account, while the maximum limit is Rs 1.5 lakh in a year.  

PPF Interest rate    

The PPF interest rate is 7.1 per cent and is compounded annually. The PPF scheme is backed by the government of India and it offers a guaranteed risk-free return.  

PPF partial withdrawals  

The account holder can partial withdrawal money before maturity. Partial withdrawals are allowed from the seventh year and the entire corpus can be withdrawn only after 15 years  

 PPF account maturity period    

The PPF maturity period is 15 years, The investor can increase the time of 5 years as per the wish.

PPF calculator: How to become crorepati    

Time period – 25 years  

Yearly investment – Rs 1,50,000  

Rate of interest – 7.1% (Current rate)  

Total investment - Rs 37,50,000  

Total interest – Rs 65,58,015  

Maturity value – Rs 1,03,08,015