Post office scheme: Nowadays, everyone is looking for investment options that offer both security and excellent returns. Currently, a fantastic scheme from the post office is creating a buzz among people. This scheme allows you to earn excellent returns with minimal investment. We are talking about the PPF scheme.

The Public Provident Fund (PPF) scheme offered by the post office is a great option. This scheme is considered a “powerhouse of safe investment” among financial experts. If you want to build a large fund for your future needs, children’s education, or retirement, this scheme can prove ideal for you.

Excellent Returns with Low Investment

Investing in PPF is simple, but to reap its benefits, an early start and regular investment are crucial. Currently, this scheme offers an attractive interest rate of 7.9%. If you save just ₹411 daily, your total monthly deposit will be approximately ₹12,500. Annually, this investment will amount to ₹1.5 lakh.

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The maturity period of PPF is 15 years. If you continue regular investments, your total fund can reach approximately ₹43.6 lakh at the end of 15 years. Of this, your own deposit will be only ₹22.5 lakh, while you will receive approximately ₹21 lakh as interest.

Government Guarantee and Tax Benefits

The biggest advantage of PPF is its security and tax exemption. This scheme falls under the EEE (Exempt-Exempt-Exempt) category. This means that the invested amount, the interest earned, and the total amount received at maturity are all tax-free. Additionally, tax benefits are available on investments up to ₹1.5 lakh annually under Section 80C of the Income Tax Act. In terms of security, this scheme is backed by the Government of India, so your entire deposit is safe.

Loan for Emergency Needs

Unexpected financial needs can arise in life. The PPF scheme offers a loan facility against your deposits between the third and sixth years. The interest rate on this loan is significantly lower than that of a regular personal loan, and repayment is also easier.

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PPF offers digital convenience

Investing in PPF is completely flexible. You don’t need to deposit a fixed amount every month. You can deposit a lump sum annually or invest in 12 installments throughout the year, as per your convenience. There’s no need to visit the post office anymore. You can now manage your PPF account from the comfort of your home through India Post Payments Bank (IPPB) or the DakPay app.