Crorepati Calculator: Your Public Provident Fund (PF) account can make you rich in long-term! Follow this expert's tips
Crorepati Calculator: The Public Provident Fund (PPF) account is one of the most preferred retirement-oriented investments among the earning individuals.

Crorepati Calculator: The Public Provident Fund (PPF) account is one of the most preferred retirement-oriented investments among the earning individuals. This is one of the central government backed small saving schemes that gives assured returns. Currently, the PPF interest rate is 7.1 per cent, which is enough to beat inflation over the long-term. According to tax and investment experts, one can accumulate wealth for one's retirement fund through PPF which is able to beat inflation rate of some 6 per cent over the long-term.
Speaking on how PPF is able to beat average inflation in the long-term Jitendra Solanki, a SEBI registered tax and investment expert said, "Average inflation in the long-term is considered 6 per cent and PPF interest rate is 7.1 per cent. So, if an investor has low risk appetite, then PPF is one of those limited tools that can help the investor beat the vagaries of inflation and grow a retirement fund that will be able to meet the post-retirement financial needs of the investor."
On how one can maximise PPF account benefits, Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "One can extend one's PPF account in a block of five years by submitting Form 16-H during the PPF account maturity year. That means, this form must be submitted in the 15th year in order to extend PPF account for another five years. The same can be done in the 20th, 25th year too." Jhaveri said that investing in PPF for 30 years is possible because generally, investors become vigilant enough about investment at the age of around 30 years.
WATCH | Zee Business Live TV streaming below:
Assuming PPF account is opened now and the investor goes on investing Rs 1.5 lakh for the next 30 years then, keeping PPF interest rate at 7.1 per cent, it would be possible to accumulate Rs 1,54,50,911, shows PPF calculator.
Source: PFF Calculator Courtesy Groww
In this period of 30 years, one would be investing Rs 45 lakh and the PPF interest getting credit into the PPF account will be Rs 1,09,50,911. So, in short, one can become crorepati by investing in PPF.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Gratuity Calculation: What will be your gratuity on Rs 45,000 last-drawn basic salary for 6 years & 9 months of service?

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme

Monthly Pension Calculations: Is your basic pension Rs 26,000, Rs 38,000, or Rs 47,000? Know what can be your total pension as per latest DR rates
09:20 AM IST