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You can become a crorepati by saving Rs 416 daily, know how

Public Provident Fund (PPF) is an old way of saving and is especially popular among the salaried class. The PPF scheme is a very useful scheme for the common people. At present, it pays 7.1% per annum interest, which is much higher than fixed deposits at banks. PPF has more interest than other tax saving schemes such as 5 years FD, National Saving Certificate and Time Deposit Scheme.

Now if you’re planning to turn your little investments into something big, then PPF is the place to put your money into. All you need is a little patience and this is for long-term investors who wish to become a crorepati.

If you roughly invest around Rs 1.5 lakh in a year, which is around Rs 12,500 per month for a long time, you can turn your investment into Rs 1 crore.

At present, the government gives an annual interest of 7.1% on the PPF account. Investment in the scheme is made for a minimum of 15 years. So, if you invest Rs 12,500 a month for 15 years, it will turn into Rs 40,68,209 at the time of maturity. The total investment would stand at Rs 22.5 lakh and interest at Rs 18,18,209.

You can continue investing in the PPF scheme for ten more years to become a crorepati instead of withdrawing it. In the next five years after maturity, your investment will turn into Rs 66,58,288. And in the next five years, which means after 25 years after you start investing in PPF, your investment will finally turn into Rs 1,03,08,015. 

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