How to turn out to be crorepati via making an investment 1

How to turn out to be crorepati via making an investment

Public Provident Fund (PPF) is undoubtedly one of the friendly and safest investment options that allow you to gather a massive corpus for years and save earnings tax. The PPF account interest rate is eight, with a lock-in period of 15 years. Often, salaried employees in the excessive tax bracket deal with a PPF account as an option wherein they can deposit some money as a final lodge to keep taxes closer to the end of the economic 12 months and before filing the yearly profits tax go back. However, you may be amazed that such an exercise can put off your life’s financial goals through a massive margin.

The following illustration will show that the timing of funding may be critical if you plan to make the maximum out of the PPF investment. Take a look:


First, suppose you open the PPF account on April 1, 2019 (on the modern-day price of a hobby of eight in line with the annum and the maximum deposit restriction at Rs 1.5 lakh in keeping with the annum) and deposit Rs eighty 000 on the day of establishing the account, Rs 40,000 on August 4, 2019, and Rs 30,000 on November 10, 2019.

The PPF account interest rate is calculated best on the remaining day of the financial year. So, it does not depend on whether you deposit the amount throughout the monetary year. The hobby earned will mirror your passbook handiest on or after the closing day of the financial year. PPF account most restriction in step with 12 months alert: You might not earn interest in this deposit.

If you update your PPF passbook before the last day of the financial year, it will only replicate the deposited amount within the year.

Now, deliberating the above examples, check how the interest fee may be calculated:

– The first funding of Rs eighty 000 completed on the primary day of the brand new economic 12 months (April 1, 2019) will earn hobby for the entire year.

– The 2d deposit of Rs forty 000 will earn interest best from August till March (around eight months).

– The third deposit of Rs 30,000 will be used to earn the hobby from December to March (Four months).

– The interest earned within the first or maybe calculated by using the easy interest formulation we learned in faculties: “Principle x Time x Rate of Interest/100”.

The time in terms of 12 months in the 3 cases can be 12/12 = one year; 8/12 = 2/3 12 months; and 4/12/12=1/three years, respectively. The interest you may earn can be:

1. Rs eighty,000 x 12/12 x eight/100 = Rs 6400
2. Rs forty,000 x eight/12 x 8/one hundred = Rs 2133.33
3. Rs 30,000 x 4/12 x eight/one hundred = Rs 800

Thus, the full interest earned on your PPF deposit within 12 months might be Rs 6400 + Rs 2133 + Rs 800 = Rs 9333.

However, in case you deposit the entire Rs 1,50,000 (Rs eighty,000 + Rs 40,000 + Rs 30000) on the primary day of the financial 12 months, the interest charge earned via you’ll be equal to Rs 1,50,000 x 12/12 x eight/100 = Rs 12,000.

This exciting amount is added to your overall deposit within the subsequent monetary year to calculate the total income earned and so on in subsequent years.

From the above illustration, it’s clear that making an investment within the PPF account at the beginning of the financial year can yield higher returns.
Are you a Credit card, Debit, ATM, or Internet Banking fraud victim? The government is working with the Reserve Bank of India (RBI) to investigate frauds under Rs 1 lakh. The government has also prepared a Financial Data Protection Bill. Union IT Minister Ravi Shankar Prasad shared this record in the Rajya Sabha.

The minister said the authorities are working with the Reserve Bank (RBI) to inspect cases of economic fraud involving amounts under Rs 1 lakh, PTI reported. Prasad stated within the Upper House that a Financial Data Protection bill has additionally been drafted to deal with issues associated with record robbery, including from social networking websites.

A gift, the central bank, alongside different creditors, is tracking cases of fraud associated with credit, debit, and ATM cards and internet banking concerning over Rs one lakh. Prasad stated, “The facts of India cannot be stolen, and strict action could be taken against any fraud,” Prasad said at some stage in the Question Hour while responding to Supplementary queries.”

The Union minister also noted that information on hacking located earlier than the Upper House is considerably associated with monetary fraud. The RBI is already looking into fraud involving transactions above Rs one lakh. “We are working with the RBI to investigate frauds related to transactions under Rs one lakh,” he stated.

Responding to a supplementary question on steps taken to lessen hacking of records from social networking websites, the Union minister stated, “Today, India will not bow down to the new imperialism. We took the movement in opposition to Facebook the instant we acquired the grievance.”


I am a writer, financial consultant, husband, father, and avid surfer. I am also a long-time entrepreneur, investor, and trader. For almost two decades, I have worked in the financial sector, and now I focus on making money through investing in stock trading.