PPF- If you are looking for a safe investment and want your small savings to become a big fund in the future, then the Post Office Public Provident Fund (PPF) scheme can be a great option for you. This scheme is not only safe but also offers the benefit of tax savings and attractive interest rates.
You can create a fund of Rs 43 lakh by saving just Rs 411 per day
It is very easy to invest in the Post Office PPF scheme. Currently, this scheme is offering 7.9% annual interest, which gives very attractive returns in the long run. If you save Rs 12,500 every month, i.e. about Rs 411 daily, then a total of Rs 1.5 lakh will be deposited in a year. The maturity period of the scheme is 15 years. During this time, if you continuously invest Rs 1.5 lakh annually, then after 15 years you can get a fund of about Rs 43.60 lakh. Out of this, about Rs 21 lakh will be in the form of interest only.
The biggest feature of the PPF scheme is that both the interest received and the amount deposited are completely tax-free. This exemption is available under Section 80C of the Income Tax. This means that not only are you saving, but you also do not have to pay any tax on that savings. Therefore, this scheme is especially beneficial for those investors who want to make a long-term safe investment while saving tax.
PPF is a scheme fully supported by the Government of India. Therefore, the investment made in it is not only safe, but also gives more interest than the bank’s fixed deposit (FD). This is the reason why this scheme remains the first choice of millions of investors. If you want, you can deposit a lump sum amount in the PPF account or you can also invest monthly in 12 installments. This flexibility gives investors an opportunity to join the scheme as per their convenience.
Between the third and sixth year of opening a PPF account, you can also take a loan against your deposits. This option proves to be very helpful in emergency situations. The special thing is that this loan is available at a low interest rate and can be repaid easily.
Investment can also be done online
In the digital age, the post office has also made its services online. Now you can transfer money directly from your bank account to the PPF account through India Post Payments Bank (IPPB) or DakPay app. For this, you just have to link your IPPB account to your bank account, then select the PPF option in the app and fill in the required details.
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