Post Office Scheme: If you want to invest your money in the right way, then there are many such schemes which can make you rich. One such Post Office’s Public Provident Fund (PPF) scheme. This scheme of post office is very helpful in creating a big fund in the long run.
safest investment
The specialty of this scheme is that your investment in it is completely safe. It is not affected by market fluctuations. These interest rates are decided by the government, which are reviewed on a quarterly basis. At present 7.1 percent annual interest is being given on the PPF scheme of the post office.
Account can be opened in bank branch or post office
You can open Public Provident Fund (PPF) account by going to post office or bank. This account can be opened with just Rs 500. In this, up to Rs 1.50 lakh can be deposited annually. The maturity period of this account is 15 years. But, after maturity, there is a facility to extend it in the bracket of 5-5 years.
You can become a millionaire by investing Rs 12500!
If you deposit Rs 12,500 every month in your PPF account and maintain it for 15 years, you will get a total of Rs 40.68 lakh on maturity. Your total investment in this will be Rs 22.50 lakh, while your interest income will be Rs 18.18 lakh.
Let us tell you, this calculation has been done assuming an interest rate of 7.1% per year for the next 15 years. The maturity amount may change when the interest rate changes. Know here that compounding in PPF happens on an annual basis.
This way there will be profit worth crores
If you want to become a millionaire through this scheme, then you will have to double it for 5-5 years after 15 years. That means now your investment period is 25 years. Thus, your total corpus after 25 years will be Rs 1.03 crore. Your total investment during this period will be Rs 37.50 lakh, while you will get Rs 65.58 lakh as interest income.
Keep in mind that if you want to extend your PPF account, you will have to apply one year before maturity. The account cannot be extended after maturity.
Tax benefits
The biggest advantage of the PPF scheme is that it provides tax benefits under Section 80C of the Income Tax Act. In this, rebate can be availed on investment up to Rs 1.5 lakh in the scheme. The interest and maturity amount earned in PPF is also tax free. In this way investment in PPF comes in ‘EEE’ category.
It is noteworthy that the government sponsors the Small Savings Scheme. Therefore, subscribers get complete security on their investment. In this, sovereign guarantee is available on the interest earned.
