Investment Tips: Open this account in the name of your children with amazing returns! You will get 1 crore after 25 years, know the process..

PPF Scheme: Securing the future of children is every parent's dream. Imagine, when your child is 25 years old, starts a job or starts a new married life, and you give him a gift of Rs 1 crore. What a great support it will be! Your dream can come true if you open a Public Provident Fund (PPF) account in the name of your child.

This is a government scheme that gives safe investment and good returns. Let us explain it to you easily. Any Indian citizen can open a PPF account in his or his minor child's name. When the child turns 18, he can manage this account himself.

When will you get a fund of Rs 1 crore?

The maturity of PPF is 15 years, but it can be extended twice for 5 5 years. That is, you can deposit money in it for a total of 25 years. Every year, you can deposit a maximum of Rs 1.5 lakh in it. The current interest rate is 7.1% per annum, which increases with compound interest every quarter.

If you open a PPF account at the time of your child's birth or a year or two later and deposit Rs 1.5 lakh every year, then after 15 years, your total deposit will be Rs 22.5 lakh. With 7.1% interest, this amount will increase to Rs 40,68,209. Now, if you extend it for 5 years and then another 5 years, that is, deposit Rs 1.5 lakh every year for a total of 25 years, your total investment will be Rs 37.5 lakh. After adding interest on this, this amount will become Rs 1.02 crore after 25 years. This Rs 1 crore will be a big support for your child, whether he starts a job, does business, or gets married.

How to open an account?

Opening a PPF account is very easy. You can go to the post office or any bank. For this, KYC documents like Aadhar card, voter ID or driving license, PAN card, address proof, nominee form, and passport-size photo are required. You can open an account both online and offline.

Another advantage of PPF is that it can also become a source of monthly income. If you do not close the account after 25 years and extend it for 5 years without new investment, then you will get 7.1% interest on a balance of Rs 1 crore. This will be Rs 7.1 lakh annually, i.e., about Rs 59,166 per month. You can withdraw the interest amount every year, and there will be no tax on it.

The benefit of a tax-free investment
PPF is a safe and tax-free investment. In this, tax exemption is available on all three - deposit amount, interest, and withdrawal. This scheme is best for those parents who want to strengthen their child's future. With just a little planning and regular investment every year, you can gift Rs 1 crore to your child after 25 years. So don't delay, open a PPF account today and brighten your child's future.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.