Retirement Planning: Want to generate Rs 1,54,50,910 tax-free corpus? This guaranteed return scheme can be of immense help
PPF Calculator: Know how investing Rs 1.5 lakh annually in the Public Provident Fund (PPF) can help you accumulate over Rs 1,54,50,910 in 25 years. Also, explore benefits, tax advantages, and strategies for maximizing your PPF savings.
PPF Calculator: For those looking to build substantial savings, the Public Provident Fund (PPF) is an excellent long-term investment option. One of the key advantages of PPF is that it offers government-backed security. Deposits up to Rs 1.50 lakh in a financial year provides tax benefits under Section 80C of the Income Tax Act, 1961. The interest earned and maturity amount are also tax-free.
How much will you receive upon maturity after 15 years, 20 years, 25 years, and 30 years?
You earn a fixed interest rate on your investments, making it a better choice for risk-averse investors. As per current regulations, you can deposit a maximum of Rs 1.5 lakh annually into your PPF account. But how much will you receive upon maturity after 15 years, 20 years, 25 years, and 30 years? Know here.
PPF Calculator: How much will you warn by depositing Rs 1.5 lakh over 15 years?
Using the PPF calculator, if you invest Rs 1.5 lakh every year, your total investment over 15 years will amount to Rs 22,50,000. With the current interest rate of 7.1 per cent, you will earn an estimated amount of Rs 18,18,209 in interest over this period. Therefore, upon maturity, your total amount will be Rs 40,68,209.
Extend your PPF for greater benefits
You have the option to extend your PPF account after the initial 15-year term. To do this, you need to apply one year before maturity. PPF accounts can be extended in blocks of 5 years, allowing for multiple extensions.
PPF Calculator: How much will you warn by depositing Rs 1.5 lakh over 20 years?
If you extend your PPF account for an additional 5 years, while continuing to invest Rs 1.5 lakh annually, your total investment will reach Rs 30,00,000 over 20 years. At an interest rate of 7.1 per cent, you will earn Rs 36,58,288 (approx.) in interest, resulting in a maturity amount of Rs 66,58,288.
PPF Calculator: How much will you warn by depositing Rs 1.5 lakh over 25 years?
If you extend it once more, for a total of 25 years, your investment will grow to Rs 37,50,000. The estimated interest earned will be Rs 65,58,014, bringing your maturity amount to Rs 1,03,08,014.
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PPF Calculator: How much will you warn by depositing Rs 1.5 lakh over 30 years?
If you extend it once more, for a total of 30 years, your investment will grow to Rs 45,00,000. The estimated interest earned will be Rs 1,09,50,910, bringing your maturity amount to Rs 1,54,50,910.
Tax Benefits of PPF
PPF is categorized as an EEE (Exempt-Exempt-Exempt) scheme, making it highly beneficial for tax savings. Investors enjoy tax deductions on contributions, tax-free interest, and a tax-exempt maturity amount.