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Everyone wants to save some part of their earnings and invest it in a place where their money is not only safe but also gets strong returns. Although there are many savings schemes available for this, but one of them is a government scheme, which is quite popular. Yes, we are talking about the Public Provident Fund of the Post Office, it has many benefits in terms of long term investment. In this scheme, you can save just Rs 250 daily and accumulate a fund of Rs 24 lakh for yourself. Let us know how…
7% plus interest and tax benefits
Not only do you get excellent interest on investment in Public Provident Fund, but the government itself guarantees the security of your investment. Talking about PPF interest rate, a strong interest of 7.1 percent is available on investment in it. Along with this, tax benefit is also available in the post office scheme. That means, along with excellent returns, it is also excellent in terms of savings.
PPF scheme is an EEE category scheme, that is, whatever investment is made in it every year remains absolutely tax free. Apart from this, investors do not have to pay any tax on the interest received and funds received on maturity.
How will you be able to deposit Rs 24 lakh?
Now let us talk about how and by when a fund of Rs 24 lakh can be deposited in this scheme with a daily savings of just Rs 250. So its calculation is also very easy. If you save Rs 250 daily then your savings become Rs 7500 every month and on annual basis you save Rs 90,000. You will have to invest this money in PPF every year for 15 years.
Actually, the investment limit in PPF scheme is 15 years. That is, in 15 years, your total deposit amount of Rs 90,000 every year will be Rs 13,50,000 and if we look at the interest rate on it at the rate of 7.1 percent, then it will be Rs 10,90,926 and you will get the total. Rs 24,40,926 on maturity. ,
Account can be opened with Rs 500
In Post Office Public Provident Fund Scheme, you can open an account with just Rs 500 and a maximum of Rs 1.5 lakh can be invested every year. Apart from returns and tax benefits, one also gets the benefit of loan facility. The special thing is that loan taken against PPF investment is cheaper as compared to unsecured loan.
In this scheme, loan under investment is given on the basis of your deposit amount and for this you have to pay one percent more interest than the interest received in the scheme. That means, if you take a loan through PPF investment, you will get interest at the rate of 8.1 percent.
