The post office has come up with the best offer plan for its customers. Under this scheme, a quantity of Rs 2000 has to be deposited. In the end you will get lakhs of rupees. This account can be opened in any of your nearest post office. Any citizen of the country can open this account. This scheme is fully recognized by the government in which there is no scope for any kind of fraud. From April 1, 2020, the government is paying an interest of 7.10 percent on this account. More interest is available on PPF than on FD account or RD account run in State Bank or other banks of the country.
500 can be deposited in this account every year. If you keep depositing 500 rupees every year, then this account will continue. One can deposit up to a maximum of Rs 1.5 lakh in a financial year. This account is for the people of lower income group. Therefore, the maximum deposit amount is fixed at Rs 1.5 lakh, on which good account interest is given. This account cannot be opened in a joint and gets the right to choose the nominee. EEE tax exemption is available in this scheme. There is no tax on all three types of money deposited, interest and return. The maximum amount deposited is Rs 1.5 lakh, which gets tax exemption under section 80C of Income Tax.
Benefit of compound interest
This account matures in 15 years. The money deposited in this account earns compound interest. Suppose you deposited Rs 500, on which interest of Rs 30 was received in one year, then from next year the interest will be calculated on Rs 530. Let’s look at an example to understand the benefits of PPF. Suppose you deposit 500 rupees every month in this account. This deposit of Rs 500 will last for 15 years and on maturity will become Rs 90,000. On this you will get an interest of Rs 67,784. Accordingly, after 15 years, the total amount will be Rs 1,57,784 in your hands. That is, on depositing 90 thousand rupees, you will get more than 1.5 lakh rupees.
Account start with Rs.500
Suppose a person has deposited Rs 1,000 in PPF account every month. A deposit of Rs 1000 will become Rs 1,80,000 in 15 years. On this you will get interest of Rs 1,35,567. Add both the amounts after 15 years on maturity it will be Rs 3,15,567. If a person deposits 2 thousand or 24 thousand rupees annually every month, then his total deposit amount will be Rs 3,36,000. 2,71,135 will be available as interest on this. Adding the total money, the depositor will get Rs 6,31,135 in his hand.
How much will you get after depositing 10 thousand
Someone has more budget and he deposits 4 thousand every month or 48 thousand rupees annually. Accordingly, that person will deposit Rs 7,20,000 in 15 years. Finally, on maturity, he will get Rs 12,62,271. If a person deposits Rs 10,000 every month then the total deposit amount in 15 years will be Rs 18,00,000.
