Post Office Scheme: Post Office Public Provident Fund is giving interest at the rate of 7.1% per annum. This scheme provides benefits under section 80C. A minimum investment of Rs 500 can be made. The maximum limit is Rs 1.50 lakh.
Like banks, post offices also offer several schemes for savings. They contain both short and long term schemes. There is no risk by investing money on these schemes, because they are secure due to the presence of the government. Some of these schemes also get exemption under Section 80C of Income Tax.
Time Deposit, Senior Citizen Savings Scheme, Public Provident Fund (PPF), Kisan Vikas Patra are some such schemes. If you are worried about the expenditure on your children’s education, then you have a better option for the post office. By investing in this scheme, you can prepare a big fund for the expenses incurred on your child’s education in future.
Who can open PPF account?
Any person can open this account in a post office or bank in his name. Apart from this, an account can be opened by another person from the minor.
How much is the investment limit?
PPP is a great scheme according to small and big long term investment. This scheme can be opened anywhere in the bank or post office. You can open PPF account for just 500 rupees. Maximum Rs 1.5 lakh can be deposited every year in this.
Can invest for long period
PPF account maturity period is 15 years. During this time you cannot withdraw the amount in the middle. If the money is not needed immediately, then after the account holder maturity, you can carry forward your account. After 15 years, its tenure can be increased for 5-5 years. This will help you prepare increased funds.
Loan facility is available
You cannot close this account before 15 years even if you want, but loan can be taken against this account after 3 years. If someone wants, then money can be withdrawn from this account as per the rules from the 7th year.