When life moves in a new direction after marriage, many big responsibilities also come with it. One of the biggest concerns is the cost of children’s education. Considering the rapid increase in the cost of education these days, if a savings plan is not made in advance, then it can become a big burden later.
School fees, dress, books, copies, and transport expenses take a toll on the pocket every month. In such a situation, a special scheme of the post office can remove this worry of yours forever. In this scheme, you can create a large fund on maturity by depositing small amounts, which will be sufficient for the big expenses of children’s education.
Public Provident Fund (PPF)
The Public Provident Fund (PPF) scheme of the post office is a very reliable option for long-term investment. This scheme is completely safe and also gives good returns. In this, you can invest a minimum of ₹ 500 and a maximum of ₹ 1.5 lakh every year. The maturity period of this scheme is 15 years. That is, if you invest continuously for 15 years, then on maturity you get a large amount, which can prove to be helpful in expenses like higher education for children. Currently, this scheme is getting interest at an annual rate of 7.1%, which is also tax-free. For this reason, this scheme is considered very beneficial, especially for the middle class.
Saving ₹ 70 daily will make ₹ 6.78 lakhs
If you save only ₹ 70 daily, then in a month you can deposit ₹ 2,100. According to this, you will invest ₹ 25,200 in a year. If this investment is made continuously for 15 years, then the total deposit amount will be around ₹ 3.75 lakhs. Now, if an annual interest of 7.1% is added to it, then on maturity, you can get around ₹ 6.78 lakhs. This amount is very useful when children want to take admission in a big course or college after 10th or 12th and need a lump sum amount.
Invest without risk
PPF is a government scheme, so investing in it is completely safe. It is not affected by market fluctuations, as is the case in the equity market. Also, both the interest and maturity amount received in it are completely exempt from income tax, which means that those who invest in it also get tax benefits. This is a double benefit for savers—on the one hand, a large fund is created from small regular savings, and on the other hand, tax relief is also available.
Why is PPF a better option
PPF is a government scheme, so investing in it is completely safe. It is not affected by market fluctuations.
Both the interest and maturity amount received in it are completely exempt from income tax. This means that on the one hand, you create a large fund from small savings, and on the other hand, you also get tax exemption.
This scheme helps you build a strong long-term plan so that you can secure your children’s future.
Its interest rates remain stable, making it easier to predict future funds.
Thus, PPF is a powerful tool for parents who want to build a large fund for their children’s education without taking any risk. It is a smart step towards a secure future.