By saving less than Rs 500, you will get Rs 1 crore on maturity, which is a sure way to become a millionaire.

New Delhi. A person strives all his life to become a millionaire but very few people reach this point. But not now. There is a government scheme in which if you invest Rs 416 per day you can easily become a millionaire. We are talking about PPF. PPF stands for Public Provident Fund. It is a government scheme which is currently giving a return of 7.1%.

If you save Rs 416 per day for PPF, it will be Rs 12500 per month. You have to invest this amount for 15 years. Thus, you will get Rs 40.68 lakh at 15 years maturity. In this your principal investment will be Rs 22.50 lakh and the interest will be Rs 18.18 lakh. It is noteworthy that this calculation is being done at the rate of 7.1 percent. Its interest rate varies.

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How to become a millionaire?
Investing Rs 12500 per month for 15 years will give you more than Rs 40 lakh. But if you extend the scheme twice for 5 years, you will get a total of Rs 1.03 crore after 25 years. Your total investment in this will be Rs 37.50 lakh. While here your interest will increase a lot. You will get Rs 65.58 lakh from the interest. Here you have to note that if you want to extend the maturity period, you have to inform your bank 1 year before.

Provision of tax exemption
A major advantage of the PPF scheme is that the account holder gets tax exemption under Section 80C of the Income Tax Act. Account holders can avail rebate of up to Rs 1.5 lakh on PPF investments. No tax is payable on interest earned on PPF. The scheme is backed by the government, so your investment is safe.

Tags: make money, Small savings schemes