New Delhi: Everyone seeks to invest in a place where their money remains secure while also yielding future benefits. If you wish to invest and earn excellent returns for the future, do not delay. The Post Office offers several schemes through which you can earn substantial returns. Indeed, many Post Office schemes are highly popular among investors.
By investing in the Post Office’s PPF (Public Provident Fund) scheme, you can fulfil your dream of earning over ₹18 lakh solely through interest. This scheme also offers you significant tax benefits. You can easily understand the complete calculation involved in this process.
key highlights
- Principal invested — tax-exempt
- Interest earned — fully tax-free
- Maturity amount — tax-free
- Sec 80C deduction up to ₹1.5 lakh/year
- Any Indian citizen can open an account
- Parents can open an account for a minor child
- Joint accounts NOT allowed
- Min ₹500 / Max ₹1.5 lakh per year
- Government-backed — fully secure
Benefits of PPF
You can earn excellent returns through the Post Office’s PPF scheme. Investors are offered an annual interest rate of 7.1%. Furthermore, the interest earned is completely tax-free. This ensures that your earnings remain entirely secure.
A key feature of this scheme is that the entire amount received upon maturity falls outside the tax ambit. This is precisely why it is considered an excellent option for long-term investment. You are required to invest in this scheme for a period of 15 years. You also have the option to extend the tenure in blocks of five years at a time. This allows your accumulated fund to grow even larger.
How to Earn Substantial Interest in PPF
If an individual invests ₹1.5 lakh annually in the Post Office’s PPF scheme, the total principal amount accumulated over 15 years will be ₹22,50,000. Throughout this period, you will continue to receive interest benefits calculated at a rate of 7.1%. By the time of maturity, the total corpus will have grown to approximately ₹40,68,209. This means you will have earned approximately ₹18,18,209 solely in the form of interest. For this very reason, the PPF remains an extremely popular choice among investors seeking long-term investment avenues.
Minimum Investment Amount
You can initiate an investment in the Post Office’s PPF scheme with a minimum amount of just ₹500. Thus, one can embark on their investment journey even with a modest sum. Additionally, a maximum of ₹1.5 lakh can be deposited into this account within a single financial year. Anyone can invest in this scheme. There is no requirement to open a joint account.
