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News India Live, Digital Desk: In today’s time when everything is becoming expensive, it has become very important to save for yourself and your family’s future. We all are looking for an investment option where our money is 100% safe, there is no tax on it and the returns are also excellent. If you are also looking for something similar, then the government’s Public Provident Fund (PPF) The scheme is a great opportunity for you.
This is a long-term savings scheme, the biggest feature of which is its security. Every rupee invested in this is guaranteed by the government, so market fluctuations have no impact on it.
How does the magic of PPF work?
PPF is a 15-year investment plan, in which you can create a huge fund by depositing a small amount every month. The interest received on this increases in the manner of compounding, that is, you get interest not only on your principal but also on the interest.
Let us understand with a small calculation how this can convert your small investment into a huge amount.
How to make ₹8.13 lakh by saving ₹2500 per month?
Suppose, from today onwards, every month you only ₹2500 (ie ₹ 30,000 per year) decide to invest in this scheme.
- Monthly Investment: ₹2,500
- Annual Investment: ₹30,000
- Investment Period: 15 years
The interest rate on PPF is decided by the government every three months, which usually remains between 7% to 8%. if we Current interest rate of 7.1% If we calculate using this as the basis:
- Yours in 15 years total deposit Will be: ₹30,000 x 15 = ₹4,50,000
- on this you total interest will get: ₹3,63,306
- In this way, after 15 years you will have what total amount Will come, it will be: ₹4,50,000 + ₹3,63,306 = ₹8,13,306 (More than eight lakh thirteen thousand rupees!)
That means you got only about 80% interest on your deposited money.
Why is PPF the best? You get 3 tax benefits
PPF has got EEE (Exempt-Exempt-Exempt) status, which makes it the best way to save tax. This means:
- Rebate on investment: Whatever money you deposit in PPF in a year (up to ₹ 1.5 lakh), you get exemption under Section 80C of Income Tax.
- Rebate on interest: The interest received every year is completely tax-free.
- Discount on maturity: You do not have to pay any tax on the entire amount received after 15 years.
How and who can open an account?
- Any Indian citizen post office or government/private bank This account can be opened by going to.
- you at least ₹500 annually You can start investing from Rs. 1000 and maximum in a financial year ₹1.5 lakh Can deposit up to.
If you are planning a safe and profitable investment for your children’s education, their marriage or your retirement, then there can be no better option than PPF. This is the simplest and most powerful way to convert your small savings into a big fortune without any risk.
