HomePersonal FinancePPF Calculation: Big news! You will get Rs 32 lakhs by saving...

# PPF Calculation: Big news! You will get Rs 32 lakhs by saving only ₹ 200 and make a fund of 1 crore, know calculation

Crorepati Calculator: Suppose your age is 25 and you have 30-35 thousand monthly income. In the initial days, you do not have much liability, so saving Rs 200 per day is easy.

Crorepati Calculator: Often we do not give much importance to savings of Rs 100, 200 or 500. But, if we make small savings a regular habit, it can make a huge amount in the coming years. If you save Rs 200 every day and invest it every month in the Public Provident Fund (PPF) scheme of the government, then in the next 20 years you will have an amount of about 32 lakh rupees.

Public Provident Fund is a long term savings. At present, interest is being received on PPF at the rate of 7.1 percent compounding interest. PPF scheme can also make you a millionaire. If there is a plan to raise a fund of Rs 1 crore through PPF, then this dream can also be fulfilled.

#### Investing in PPF

You can open a Public Provident Fund (PPF) account in the post office or bank branch. This account can be opened with just Rs 500. In this, up to Rs 1.50 lakh can be deposited annually. The maturity of this account is 15 years. But, after maturity, there is a facility to extend it further in the bracket of 5-5 years.

#### How to make a fund of 32 lakhs from 200 rupees

If you save 200 rupees daily, then every month you will be saving about 6000 rupees. Now if you invest Rs 6000 in a monthly PPF account and maintain it for 20 years, then you will get Rs 3,195,984 on maturity. This calculation has been done assuming 7.1 percent annual interest rate for the next 20 years. The maturity amount may change when the interest rate changes. Compounding in PPF happens annually.

#### Benefits of starting at a young age

Crorepati Calculator: Suppose your age is 25 and you have 30-35 thousand monthly income. In the initial days, you do not have much liability, so saving Rs 200 per day is easy. In this way, at the age of 45, you can get a fund of about Rs 32 lakh from PPF.

#### Benefits of PPF

There are many benefits of opening a PPF account. The biggest benefit you will get in tax saving. This is because tax deduction can be taken under 80C on deposits of Rs 1.50 lakh annually in PPF. For this, maturity fund and interest income are also tax free.

#### How interest is added on PPF

Interest is added on the amount deposited in your PPF account from the 5th to the last of the month. So keep in mind the 5th of the month and make your monthly contribution before that. After this, if money comes in the account, then interest will be added on the same amount, which is in the account before the 5th.

#### Calculator: How to make 1 crore fund

The maturity of PPF is of 15 years and the maximum amount that can be deposited in the account every month is Rs 12500 i.e. Rs 1.5 lakh annually. Here you have to make a maximum contribution of Rs 12500 before 5th of every month till maturity. The total value on maturity will be Rs 40,68,209 at 7.1 per cent per annum interest. There is also an option to extend the PPF account for 5 to 5 years after maturity. In such a situation, if the contribution continues for 25 years, the total value of your investment with compounding interest will be Rs 1.03 crore (Crorepati Calculator).

#### Calculator: To Maturity

Maximum Monthly Deposit: Rs 12,500
Interest Rate: 7.1 percent
p.a. After 15 years Maturity Amount: Rs 40,68,209
Total Investment: Rs
22,50,000 Interest Benefit: Rs 18,18,209

#### Calculator: For Funds of 1 Crore

Maximum Monthly Deposit: Rs 12,500
Interest Rate: 7.1 percent p.a.
After 25 Years Maturity Amount: Rs 1.03 crore
Total Investment: Rs
37,50,000 Interest Benefit: Rs 65,58,015

Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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