Post Office Scheme: These kinds of schemes can make you wealthy if you know how to invest your money well. The Post Office’s Public Provident Fund (PPF) programme is one example of such a plan. In the long run, this Post Office plan is very beneficial for building large corpora.
Government-Set Interest Rates
This scheme’s unique selling point is how safe your investment is. The changes in the market have no effect on it. The government sets these interest rates, which are examined every three months. Currently, the PPF scheme provides the post office with an annual interest rate of 7.1 percent.
Accessible Account Opening
A Public Provident Fund (PPF) account can be opened at a bank branch or post office. All it takes to open this account is Rs 500. An annual deposit of up to Rs 1.50 lakh is permitted in this. This account has a 15-year maturity. However, there is the option to extend it further in the 5–5 year range after maturity.
Monthly Investment Strategy
Monthly deposits of Rs 12,500 into a PPF account, kept up for 15 years, will yield a total of Rs 40.68 lakh upon maturity. Your entire investment in this will be Rs 22.50 lakh, and the interest you earn will be Rs 18.18 lakh. For the next fifteen years, an interest rate of 7.1% annually has been assumed in this computation. When the interest rate fluctuates, the maturity amount could also. Be aware that PPF compounding occurs once a year.
Extension for Millionaire Status
You must increase it twice after 15 years for 5–5 years if you want to profit from this scheme and become a millionaire. In other words, you now have a 25-year investment tenure. Your total corpus will therefore be Rs 1.03 crore after 25 years. During this time, you will invest a total of Rs 37.50 lakh and receive interest income of Rs 65.58 lakh. Remember that you must apply for an extension of the PPF account at least one year prior to its maturity if you would like to extend it further. After maturity, the account cannot be extended.
Tax Advantages under Section 80C
The PPF scheme’s primary benefit is that it offers tax advantages under Income Tax Act section 80C. This allows for a deduction of up to Rs 1.5 lakh for scheme investments. In PPF, both the interest earned and the maturity amount are tax-free. PPF investments fall under the “EEE” category in this sense. Above all, the government offers small savings programmes. As a result, subscribers’ investment is fully protected in this. A sovereign guarantee on the interest earned is present in this.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.
%20and%20how%20an%20investment%20of%20Rs%2012,500%20per%20month%20can%20lead%20to%20a){kind=link}