Post Office Scheme– Every person wants to save some part of his income and invest it somewhere where his money is safe and also gets good returns. In such a situation, the PPF scheme (Public Provident Fund) of the post office can be a very reliable option for you. This scheme is especially for those people who want to get tax free returns without taking much risk. Let’s know what is special about this scheme and how you can create a big fund of up to Rs 40 lakh from monthly savings.
The government gives 7.1% tax free interest every year on Public Provident Fund. This means that neither you will have to pay any tax on it nor will any tax be deducted on the amount received. There is a lock-in period of 15 years for investment in this scheme. If you want, you can extend it for every 5 years after 15 years.
How to make 40 lakh rupees in 15 years?
If you deposit Rs 1.5 lakh every year or Rs 12,500 every month and the interest rate is 7.1%, then at the end of 15 years your total investment will be Rs 22.5 lakh. But with interest this amount will grow to around Rs 40.7 lakh.
How to start and how much can you invest?
Investment in PPF scheme can be started with just Rs 500. You can invest up to Rs 1.5 lakh annually. If you want, you can also deposit it in small installments every month. This means that if you save Rs 12,500 every month, then Rs 1.5 lakh will be invested for the whole year. You can easily open a PPF account in any post office or bank. This gives you protection from the government and your money remains safe.
Loan and withdrawal facility from account
Another big feature of the PPF scheme is that you can withdraw some amount from your account after the fifth year. This means that even during the lock-in period of 15 years, if you need money, you can withdraw it. Also, after the third financial year, you can also take a loan against the PPF account.
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