North India Statesman
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Public Provident Fund i.e. PPF is a scheme through which you can earn a lot of money in long term. This is the reason why it is part of the portfolio of most people. In this scheme, you can deposit at least Rs 500 and a maximum of Rs 1.5 lakh in a year. On this, you are given interest at the rate of 7.1 percent. But if you are asked that without investing 1 rupee in PPF, you can earn an interest of ₹ 2,88,842 from it, will you believe? Probably not, but it is true. Very few people know about this. Know how to earn millions.
PPF: How will this miracle happen?
To earn interest from PPF without contribution, you must first invest in it for 15 consecutive years. When the scheme is matured, you will get a chance to earn interest for free from it.
Learn how much you have to invest
To get a free interest of Rs 2,88,842 annually, you will have to deposit Rs 1.5 per annum for 15 years. In this way, the total investment in 15 years will be Rs 22,50,000. At the rate of 7.1 percent, you will get Rs 18,18,209 as interest and a fund of Rs 40,68,209 will be prepared on maturity.
Know what you have to do now
After investing for 15 consecutive years, your scheme will be matured but you do not have to withdraw this amount. If you do this, then you will continue to get interest according to the calculation of PPF on whatever amount will be deposited in your PPF account. This is called PPF Extension Without Contribution. No application is needed to get extension without contribution, if you do not withdraw money after maturity then it is applied automatically. You can withdraw the entire amount from such an account at any time or let it be deposited and get interest on deposits.
This is how millions of rupees will be earned from interest
After depositing Rs 1.5 annually for 15 years, a maturity amount of Rs 40,68,209 will be left in the account. If you keep it in the account, then you will get an annual interest on it according to the current interest rate. If we calculate it at the current interest rate of 7.1%, then this interest will be Rs 2,88,842. In this way, you can earn millions of rupees on interest every year without contribution. As long as this money remains deposited, you will continue to get interest on it.
Option to expand with contribution
There is also an option to expand with contribution to PPF. But for this, you have to apply for an account extension before the completion of 1 year from the date of maturity. On expansion with contribution, the account is extended directly to 5 years. You can get extensions in PPF as often as you want in 5 years block.
