With the help of PPF, your son will become a millionaire at the age of 25, know details

The most popular savings scheme in the last decades is PPF. It is considered among the small savings schemes of the Government of India, whose full name is the Public Provident Fund.

PPF account can make your son a millionaire at the age of 25, and know complete information. With the help of PPF, your son will become a millionaire at the age of 25, and know all the information. 

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Parents think about the well-being and prosperity of their children throughout their lives. His every action and every decision is related to the welfare of the children. After the formation of the Bharatiya Janata Party (BJP) government at the Center under the leadership of Prime Minister Narendra Modi in 2014, a savings scheme for daughters was started, by investing in which daughters can get huge benefits. A separate scheme was started for sons. But one of the many savings schemes already in existence – Public Provident Fund or PPF – will not only make your son a millionaire by the time he turns 25, but will also make the amount completely tax-free. 

What will you get from PPF?

Let us know about PPF in detail. The Public Provident Fund or PPF which is considered to be the most profitable scheme at present. Also, know how a child can become a millionaire by the time he turns 25. If you deposit money in your PPF account through this scheme, you can also save income tax up to ₹46,800 per year, irrespective of who is the parent of the child. The thing to keep in mind here is that when the investor is paying the full 30 percent tax as per the maximum income tax slab, the tax savings will amount to ₹46,800. If the depositor pays tax under a lower income tax slab, the amount of tax savings will also be reduced accordingly. 

The most important information about PPF 

Let us now know about the PPF scheme. The most popular savings scheme in the last decades is PPF. It is considered among the small savings schemes of the Government of India, whose full name is Public Provident Fund, also known as Public Provident Fund or PPF in English. Under this, you can open your son's account in the post office or any bank branch. Every year (here we are talking about the financial year i.e. 1st April to 31st March) in the PPF account you can deposit a minimum of ₹500 and a maximum of ₹1,50,000, on which interest will be credited to the PPF. The accounts are added on the last day of each year. So, now if you deposit ₹1,50,000 on April 1 every year, the maximum interest your account will earn at the end of the year. As of today, the government is offering an interest rate of 7.1 percent on this account, which may be much lower than in the initial years, but still, this interest rate is sufficient to keep PPF an excellent investment option.

The biggest feature of PPF

The biggest feature of PPF is that it is included in the EEE schemes of the government, that is, every year you get tax exemption on the amount deposited in the name of the child, and you also get tax exemption on the interest received on it every year. , Your son will not have to pay any tax and ultimately the entire amount received on maturity (original investment and interest) will also be completely tax-free.

How will your son become a millionaire?

Now understand how through this scheme your son can become a millionaire at the age of 25. Like Sukanya Samriddhi Yojana, in PPF you open your son's account with his birth and on 1st April every year, if you deposit a maximum of ₹1,50,000 in your account on the same day, the current rate will be credited. On March 31 next year, ₹ 10,650 will be credited to your account as interest, which will be the balance in your account. On the first day of the next financial year i.e., the balance will be ₹1,60,650 and the same amount will be ₹3,10,650 while ₹1,50,000 will be deposited for the next year's investment. Now at the end of next year, you will get interest on ₹ 3,10,650 instead of ₹ 1,50,000, which will be ₹ 22,056. Similarly, you keep depositing ₹1,50,000 in your son's PPF account on April 1 every year and at the end of 15 years of maturity, ₹40,68,209 will be deposited in your son's account in which you have invested. The amount is ₹22. ₹50,000 and the interest amount will be ₹18,18,209.

Now keep in mind, your son is only 15 years old at the moment and this will be the year that starts making him a millionaire. Now an important thing to know is that the PPF account can be extended for up to five years by applying before it matures. This extension can be availed any number of times, so you should extend your son's PPF account by one year for five years and maintain the annual investment regimen. When this account next reaches maturity (20 years of PPF account and your son's age), the total amount in it will be ₹66,58,288, out of which your investment will be ₹30,00,000 and the interest earned will be ₹36. ,58,288. Keep in mind, this time your son will turn 18 years old two years before the maturity date and the PPF account will be called Major. From then on, your son can also invest in it every year.

Now just extend your son's PPF account for five years and you or your son keep investing in it. After five years, when your son turns 25, the total amount deposited in his PPF account will be ₹ 1,03,08,014, out of which the investment amount will be ₹ 37,50,000 and the interest amount will be ₹ 65,58,015.