PPF Investment: If you do not want to take any kind of risk in terms of investment and want to deposit a lot of money, then PPF i.e. Public Provident Fund can be very helpful for you. This is a government scheme which matures in 15 years. If you want, you can also get it extended in blocks of 5-5 years. Up to Rs 1.5 lakh can be invested annually in this scheme. If you want to see yourself becoming a millionaire in a short time, then this dream can also be fulfilled with PPF. If you take the help of your wife in this matter, then you can add Rs 1.33 crore in just 20 years. Know how this will work.
With the help of wife, you will become a millionaire
According to the rules of PPF, a person can open only one PPF account in his name. There is also no option to open a joint account in PPF. But if both the husband and wife earn, then both can open separate accounts in their names and become crorepatis in just 20 years.
This is what you need to do to become a crorepati
To become a crorepati in 20 years, both the husband and wife will have to deposit Rs 1.5 lakh every year in their respective PPF accounts. You can deposit it as a lump sum or you can deposit Rs 12,500 every month to deposit Rs 1.5 lakh in a year. The scheme matures in 15 years, but you will have to extend this scheme once for 5 years and continue the contribution of Rs 1.5 lakh for 20 years.
Understand the calculation to become a millionaire
If both husband and wife deposit Rs 1.5 lakh annually in their PPF account and continue this account for 20 years, then both will deposit Rs 30 lakh each in their accounts. 7.1% interest is being given on PPF. Both husband and wife will get Rs 36,58,288 as interest in their respective accounts. In this way, both will get a total of Rs 66,58,288 in 20 years. 66,58,288 + 66,58,288 = Rs 1,33,16,576. In this way, both husband and wife will become millionaires in 20 years.
You will also get tax benefits in 3 ways
PPF investment has been kept in E-E-E category. This means that your investment, interest and maturity amount are all completely tax free.
When to apply for extension, do understand this
To become a crorepati, you will have to do extension with contribution. If you want to continue the PPF account with contribution, then you will have to give an application to the bank or post office, wherever the account is. You will have to give this application before the completion of 1 year from the date of maturity and you will have to fill a form for extension. The form will be submitted in the same post office / bank branch where the PPF account has been opened. If you are unable to submit this form on time, then you will not be able to contribute to the account.
