post office
Post office scheme: In today’s era, every person wants to invest his hard-earned money in such a place where the money is not only safe but also gives strong returns on it. For those who dream of becoming millionaires without any risk, away from the ups and downs of the stock market, the Public Provident Fund (PPF) scheme of the post office is no less than a boon. This is a scheme which is considered a ‘powerhouse of safe investment’ in the financial world. If you also want to create a big fund for future needs, children’s education or retirement, then this scheme can prove to be very useful for you.
How will saving ₹411 become ₹43 lakh?
The biggest rule of investing is to start early and be consistent. The mathematics of Post Office PPF scheme is very simple and profitable. By investing in this scheme, you can deposit a huge amount in the long term. According to the information given, at present the scheme is offering attractive interest at the rate of 7.9%.
If you calculate it, by saving just ₹ 411 daily, you save ₹ 12,500 in a month. In this way your total investment in a year becomes ₹ 1.5 lakh. The maturity period of PPF is 15 years. If you maintain this discipline and deposit ₹1.5 lakh every year, after 15 years you will have a corpus of approximately ₹43.60 lakh in your hand. The most interesting thing in this is that only ₹ 22.5 lakh will go out of your pocket, while the remaining around ₹ 21 lakh will be given to you only as interest.
Government guarantee and tax exemption
The biggest concern for the common investor is tax, but those investing in PPF get tremendous benefits here too. This scheme comes under ‘EEE’ (Exempt-Exempt-Exempt) category. This means that there is no tax on the original amount invested, nor on the interest received, nor on the entire amount received on maturity.
Under Section 80C of Income Tax, you get tax exemption on investments up to ₹ 1.5 lakh annually. Apart from this, from security point of view, this is a scheme supported by the Government of India. While in bank FD, there is insurance only up to a limit, whereas in PPF, every single penny of yours is protected under the ‘Sovereign Guarantee’ of the government.
Loan will also be available as per need
It cannot be predicted when there will be a sudden need for money in life. This scheme of the post office does not leave you even in this situation. Between the third year to the sixth year of opening the PPF account, you can also take a loan against your deposited amount. This facility proves to be very helpful in emergency situations, because the interest rates on this loan are much cheaper than personal loans and it is also easy to repay.
Apart from this, this scheme is also quite flexible regarding investment. It is not necessary that you deposit a huge amount every month. You can deposit a lump sum amount as per your convenience or invest little by little in 12 installments throughout the year.
No hassle of long lines, invest from home
Like old times, now you do not need to visit the post office or stand in long queues. With the Digital India campaign, the post office has also become hi-tech. Now you can operate your PPF account from home through India Post Payments Bank (IPPB) or DakPay app.
For this you only have to link your IPPB account with your main bank account. Once linked, you can transfer money in just a few clicks by selecting the PPF option in the app.
Also read- This scheme of Post Office will make you rich, you will get tax exemption along with better returns.