Did you know that a simple post office scheme can help you become a crorepati? Yes, you read that right! In this blog post, we’ll tell you about PPF (a post office scheme) that has the potential to earn crores with PPF over time. This may sound too good to be true, but we’ll explain everything in simple terms so you understand how it works.
Whether you’re just starting to save or looking to grow your wealth, this post office scheme could be the key to reaching your financial goals and becoming a crorepati with PPF. So, keep reading to learn about this opportunity for you to earn crores by Investing PPF 1 Crore plan.
What is PPF?
The Public Provident Fund (PPF) is a renowned post office scheme by the Government of India to encourage long-term savings and financial security. This tax-efficient program offers several benefits, making it a popular choice for building a robust retirement corpus.
Key advantages of a PPF account include tax-free contributions, interest earnings, and withdrawals. The standard 15-year maturity period can also be extended into 5-year blocks, offering flexibility to align with one’s financial goals.
By leveraging the PPF tax benefits and long-term growth potential, individuals can strategically build wealth and potentially achieve the status of a crorepati through disciplined investing.
Why Invest in a PPF?
Investors can strategically build a substantial corpus through the PPF and work towards becoming a crorepati. Here are the key reasons why you can invest in a Public Provident Fund (PPF):
- Assured Returns: PPF offers stable, government-set interest rates, currently at 7.1% per annum.
- Tax Benefits: Contributions, interest earnings, and withdrawals are tax-exempt, providing significant tax advantages.
- Long-Term Savings: The 15-year lock-in period promotes financial discipline and long-term wealth creation.
- Flexibility: Allows partial withdrawals and loan facilities against the balance after 5 years.
- Safety: As a government-backed scheme, PPF provides a high degree of safety and security for your investments.
Becoming Crorepati Through PPF
Investing in PPF not only secures your savings but also helps achieve significant financial milestones over time. Investing in PPF is often a way to earn steady returns and because it guarantees a certain amount of returns consistently at low risk, it’s possible to accumulate a significant amount over time which can be in crores.
While it takes quite some time to become a crorepati solely through PPF because of limitations on investment amount and tenure, here’s the complete table showcasing how consistent investment can grow your money over time making you a crorepati.
Assumptions:
Starting Age: 25 years
Investment Period: 35 years (Maximum tenure of 15 years with 4 extensions of 5 years)
Annual Investment: Rs. 1.5 lakh (Maximum allowed)
Interest Rate: 7.1% (Current rate, subject to change)
Based on the assumptions provided, here’s a table showcasing the growth of your investment in the Public Provident Fund (PPF) over 35 years for an Annual investment of ₹. 1,50,000 :
| Year | Interest Earned (₹) | Cumulative Corpus (₹) |
| 1 | 10,650 | 1,60,650 |
| 2 | 24,366 | 3,35,016 |
| 3 | 38,366 | 5,23,382 |
| 4 | 52,660 | 7,26,042 |
| 5 | 67,259 | 9,43,301 |
| 10 | 1,68,354 | 22,61,655 |
| 15 | 3,07,477 | 41,69,132 |
| 20 | 4,94,128 | 68,13,260 |
| 25 | 7,37,742 | 1,03,01,002 |
| 30 | 10,48,371 | 1,48,99,373 |
| 35 | 14,37,855 | 2,08,37,228 |
From the table, it’s evident that with a consistent annual investment of Rs. 1.5 lakh in PPF at an interest rate of 7.1%, your corpus will grow to approximately Rs. 2.08 crores by the end of the 35-year investment period.
PPF Calculator
You can use a PPF calculator to estimate the potential returns. To use it, just follow the easy steps and enter all the necessary data as per the directions set below.
1: Input the amount of investment annually.
2: The PPF interest rate remains fixed by the government
3: The tenure of PPF should be given in years that remain fixed.
4: The resulting sum should be displayed according to the Input amount selected.
You can also check EPF Calculator to estimate the potential returns
Also Read: Know About PPF Account Limit
To Conclude
PPF is a safe and secure government-backed scheme that offers tax benefits for contributions with a lock period that aims for long-term savings. However, becoming a Crorepati solely through PPF might require additional investments or income streams. This post office scheme offers a powerful foundation for long-term wealth creation.
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Frequently Asked Questions
Q. What is the PPF scheme?
A.PPF is backed by the Government of India, designed to help individuals build a retirement corpus while enjoying tax benefits.
Q. What is the PPF interest rate?
A. The PPF interest rate is predetermined by the government and is compounded annually. It is typically higher than savings account rates and is attractive for long-term savings.
Q. What is the interest rate of PPF in 2024?
A. The interest rate for PPF in 2024 can vary and is typically announced by the government quarterly, pending prevailing market conditions and economic factors.
Q. What is the interest rate of PPF in IPPB?
A.IPPB (India Post Payments Bank) offers PPF accounts with interest rates aligned with those set by the government for PPF accounts across other banks and post offices.
Q. Is PPF a good or bad scheme?
A.PPF is considered a good scheme for conservative investors seeking stable returns and tax benefits. It offers guaranteed returns, tax exemption on contributions, and compounding benefits over a 15-year tenure.
