If you are looking for safe investment and want your small savings to become a big fund in future, then the Post Office’s Public Provident Fund (PPF) scheme can be a great option for you. This scheme is not only safe but also gives the benefit of tax savings and attractive interest rates in it.
You can make a fund of ₹ 43 lakh by saving only ₹ 411 daily
It is very easy to invest in the PPF scheme of the post office. Currently, this scheme is getting 7.9% annual interest, which gives very attractive returns in a long time. If you save ₹ 12,500 every month i.e. about ₹ 411 daily, then a total of ₹ 1.5 lakh will be deposited in a year. The maturity period of the plan is 15 years. During this time, if you invest ₹ 1.5 lakh continuously annually, then after 15 years you can get a fund of about ₹ 43.60 lakh. Out of this, about ₹ 21 lakhs will be only in the form of interest.
Investment is completely free from tax
The biggest feature of the PPF scheme is that both the interest and the amount deposited in it are completely tax-free. This exemption is available under Section 80C of Income Tax. That is, not only you are saving, but there is no tax on that savings. Therefore, this scheme is especially beneficial for those investors who want to make long -term investment while saving tax.
Investment is 100% safe from government guarantee
PPF is a fully supported scheme by the Government of India. Therefore, the investment made in it is not only safe, but also pays more interest than the bank’s fixed deposit (FD). This is the reason that this scheme remains the first choice of millions of investors. If you want, you can deposit a lump sum amount in PPF account or you can also make monthly investment in 12 installments. This flexibility gives investors a chance to join the scheme as per their convenience.
Loan can be found when needed
Between the third and sixth year of opening the PPF account, you can also take a loan on your deposit. This option proves to be very helpful in emergency situations. The special thing is that this loan is available at low interest rate and it can be easily repaid.
Investment can also be done online
In the digital age, the post office has also made its services online. Now you can transfer money directly from your bank account to PPF account through India Post Payments Bank (IPPB) or Dakpay app. For this, you just have to link your IPPB account to your bank account, then by choosing the PPF option in the app, filling the required details.