PPF Scheme of Post Office
After marriage, when life grows in a new direction, many responsibilities come together. One of them is the biggest concern, the expenses of children’s education. In the current era, the expenditure of education has increased rapidly. School fees, dress, book-copy, transport and school programs, all of them cost a lot every month. In such a situation, if some savings are already planned, then later these expenses do not become a burden. A particular scheme of post office can solve this problem. In this, by depositing small amounts till the fixed time, you get a hefty amount on maturity, which is enough for big expenses like children’s education.
Large funds will be made with small savings
The Post Office’s Public Provident Fund (PPF) scheme is a reliable option for long -term investment. This scheme is also safe and good returns are also available in it. In this scheme, at least Rs 500 and a maximum of Rs 1.5 lakh can be invested in this scheme. The termination period of this scheme is 15 years. That is, if you invest regularly for 15 years, then you get a big amount on maturity, which can prove to be helpful in expenses like Higher Education of Children. Currently, this scheme is getting 7.1% annual interest, which is also tax free. This is the reason why this scheme is considered very beneficial especially for the middle class.
A fund of 6.78 lakhs will be ready by saving Rs 70 daily
If you save only 70 rupees daily, then you can deposit Rs 2,100 a month. According to this, you will invest Rs 25,200 in a year. If this investment is made continuously for 15 years, then the total deposit will be around 3.75 lakh rupees. Now add 7.1% annual interest to it, then you can get about 6.78 lakh rupees on maturity. This amount is very useful when children want to enroll in a big course or college after 10th or 12th and a lump sum is needed.
Can invest without risk
PPF is a scheme run by the government, so investment in it is completely safe. It is not affected by market fluctuations like a bank. Also, both the interest and maturity amounts received in it are completely exempted from income tax, that is, the taxpayer also gets tax benefit. This is a double advantage for those who are, on the one hand, regular small savings make a big fund, on the other hand, there is also relief in tax.
Why is this scheme better option?
- Funds are ready on time for education expenses.
- The interest rate is fixed, which makes it easier to estimate.
- Investment is safe, with government guarantee.
- Tax exemption is also available.
- Long -term strong plans are made in the short budget.