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Post office is a better option for investors looking for safe investment and guaranteed returns. Like banks, many schemes are run in post offices also. A special scheme of the post office for long-term investors is Public Provident Fund. This scheme is also available in banks. Interest is available on PPF at the rate of 7.1 percent. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in this scheme. If you want, you can add a good amount through this scheme. You can also avail tax exemption on this scheme.
Save ₹250 daily and add more than ₹24 lakh
If you want, you can accumulate a huge amount by saving a little every day. If you invest Rs 7500 every month then you will have to save Rs 250 every day. Accordingly, you will invest Rs 90,000 annually in the PPF scheme. PPF is a 15 year scheme. In such a situation, if you calculate according to the PPF calculator, then by investing Rs 90,000, you will invest a total of Rs 13,50,000 in 15 years. On this you will get Rs 10,90,926 as interest at the rate of 7.1 percent and in 15 years you will get Rs 24,40,926.
Very good plan from tax point of view
PPF is also considered a good scheme from the point of view of tax saving. This is a scheme of EEE category i.e. Exempt Exempt Category. In this, there is no tax on the amount deposited every year, the interest received on this amount every year and the entire amount received at the time of maturity is tax free. In this way, this scheme falling under EEE category saves tax on investment, interest/return and maturity.
Loan facility is also available
PPF account holders also get loan facility in this. You get loan on the basis of amount deposited in PPF account. This loan is cheaper than unsecured loan. According to the rules, the interest rate on PPF loan is only 1% more than the interest rates on PPF account. That is, if you are getting 7.1% interest on PPF account, then you will have to pay 8.1% interest on taking the loan.