PPF Account: Invest this much every month, and you will become a millionaire!

PC: The Economic Times

If you are employed, you would be familiar with Provident Fund or PF, as a part of your salary is deducted from it, which is essentially your savings. Similarly, there is another account, where if you start investing, you can become a millionaire in a few years. We are talking about the Public Provident Fund i.e. PPF, where lakhs of people invest.

Today we will tell you how much you will have to invest monthly in PPF to become a millionaire.

The account can be opened with just Rs 500

PPF is a zero-risk savings plan. It offers an interest rate of 7.1% and also offers tax benefits. You can open a PPF account with just Rs 500. You can invest a minimum of Rs 500 to a maximum of Rs 1.5 lakh annually. Now let us know how much you will have to invest to deposit Rs 1 crore in this account.

PC: Unsplash

Reaching Rs 1 crore

PPF account has a lock-in period of 15 years, which means you cannot withdraw money before that. After 15 years you can extend it in a block of five years. So, you can save for 25 years. If you invest Rs 12,005 every month for 25 years, you will accumulate Rs 1 crore. Similarly, if you deposit Rs 10,000 monthly, you will have more than Rs 80 lakh.

PC: Business Today

You can open this account in any bank or post office and any Indian citizen can open it. An important advantage is that it offers tax-saving benefits, and no tax is levied on the amount received after maturity. If you have not invested anywhere yet then you can consider this option.