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Post office is a better way for investors looking for safe investment and guaranteed returns. Like banks, many schemes are run in post offices also. Post Office Public Provident Fund is a special scheme for long-term investors. This scheme is also available in banks. Interest is available in 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 of money through this scheme. You can also avail tax exemption on this scheme
Save ₹250 per day and add over ₹24 lakh
If you want, you can add a big amount by small savings every day. If you invest Rs 7500 every month then you will have to save Rs 250 daily. 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 on the basis of 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.
It is a 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 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, in this scheme falling under EEE category, there is saving of tax on investment, interest/return and maturity.
loan facility also
PPF account holders also get loan facility in this. You get a loan on the basis of the amount deposited in your PPF account. This loan is cheaper than unsecured loan. As per the rules, the interest rate on PPF loan is only 1% higher than the interest rates available on PPF account. That means, if you are taking 7.1 percent interest on PPF account, then you will have to pay 8.1 percent interest on taking the loan.