To continue earning even after retirement, it is important that you invest along with the job. PPF (Public Provident Fund) is a very good option for depositing a fat fund after retirement. It is quite popular among people. You can also accumulate fat funds by investing in PPF. While this scheme gets a high interest of 7.1 percent on one hand, on the other hand, the interest in this scheme is calculated in compound i.e. compound interest. This means interest is also paid on the interest along with the investment amount.
Every year tax saving
Investments in PPF scheme result in income tax savings every year, the interest credited to the account every year is taxable, and finally there is no tax to be paid on the amount received on maturity. This small savings scheme promotes long-term investment, and build a sizeable corpus for future needs. A maximum of Rs.1,50,000 can be invested in PPF per annum, and have to be invested for 15 consecutive years.
PPF calculation
According to the PPF Calculator, if you deposit 1.5 lakh rupees every year in PPF, then in 15 years you will invest a total of Rs 22,50,000 in this scheme. This scheme is being given interest at the rate of 7.1%, in which 15 years you will get Rs 18,18,209 as interest at 7.1%. In this way, if you withdraw the amount after 15 years, then you will get a total of Rs 40,68,209 as maturity amount.
A option to invest for 5 years
There is another option to extend the scheme for more 5 years. In this way if you invest 15000 more for 12 month X 5 years, then the profit will be more. In 20 years, you will invest a total of 30,00,000. At 7.1 per cent, you will get an interest of Rs 36,58,288 and the maturity amount will be Rs 66,58,288. On the other hand, if you get it extended once more, that is, continue with this investment for 25 years, then your investment will be a total of Rs 37,50,000. Interest on this will be Rs 65,58,015 and maturity amount will be Rs 1,03,08,015.