look news india
Even today people in rural India prefer to invest in post office schemes. The reason is that there is no risk in the post office scheme. Apart from this the returns are also quite good. This is the reason why despite the availability of investment options like mutual funds and shares, common people trust post office schemes the most.
At present, interest is being given at the rate of 7.10 percent on Post Office Public Provident Fund Scheme i.e. PPF. You will have to spend at least Rs. You can start investing in PPF with Rs 500. You can deposit any maximum amount in this. But you will get exemption only up to a maximum of Rs 1.5 lakh under Section 80C of Income Tax.
The interest income on maturity will also be completely tax free. Its maturity period is 15 years and thereafter it can be extended in blocks of 5 years. Under this scheme a person can open only one account.
According to the current rate, if you invest Rs 100 daily, then on maturity after 15 years you will get a lump sum of Rs 9,76,370 which will be completely tax free. Your total deposit amount in 15 years will be Rs 5,40,000. In this way you will easily become a millionaire.
There is also the benefit of loan against PPF. You get the loan facility from the next financial year in which you start investing. This facility lasts for five years. You can get a loan up to 25 percent of the amount deposited in your account.
, Loan can be taken only once in a financial year. No second loan will be available until the first loan is repaid. If the loan is repaid in three years the interest rate will be only 1 percent per annum.
As far as withdrawals are concerned, withdrawals can be made once in a financial year after a lock-in period of five years. This can be up to 50 percent of the amount deposited in your account. As far as premature closure is concerned, it is allowed when the account holder is ill or for the higher education of himself or his children. Some charges are deducted for this.