You can start investing in this scheme with a very small amount. This scheme can make you a millionaire on maturity. In this you have to invest for 15 years. But you can extend the maturity tenure by 5-5 years.
New Delhi. Post office savings schemes are considered one of the safest investment options. But these schemes are not only safe but also give good returns. One such post office scheme is PPF (Post Office Public Provident Fund). You can start investing in this scheme with a very small amount. This scheme can make you a millionaire on maturity.
You have to deposit Rs 417 every day in this scheme. In this you have to invest 15 years. After this, you can extend the maturity tenure by 5-5 years. Similarly, by extending it, you can take it for 15 to 10 years and further i.e. up to 25 years.
Understand the math of investing
Invest in this scheme for the first 15 years. You can deposit Rs 417 per day or Rs 12,500 monthly. You can deposit a maximum of Rs 1.5 lakh in a year. On completion of 15 years, your amount will be Rs 22.5 lakh. You will get 7.1 percent interest on the deposit every year. For 15 years, your interest amount will be Rs 18 lakh.
How much will you get
On maturity of 15 years, your total amount will be Rs 40 lakhs with principal of 22.5 lakhs and interest of 18 lakhs. However, if you increase the maturity tenure 2 times to 25 years and invest Rs 1.5 lakh every year for 25 years, then on maturity you will get a total of Rs 1.03 crore.
How to open account
You have to invest at least Rs 500 to start this account. You have to deposit a minimum of Rs 500 in this account every year. If this does not happen then the PPF account will be closed. Any adult Indian citizen can open this account by visiting the post office. Children can also open this account under the supervision of their parents. This account can also be opened in any bank. However, only one account can be opened in the name of an individual in any bank or post office.
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