Post Office Saving Scheme: If you want to earn great money through investment, then you can approach the schemes running in the post office. There is no risk involved in these plans.
Generally, the post office gets better interest than the bank. Similarly, Public Provident Fund (PPF) of Post Office is a great investment option. Its most important thing is that investment can be started with less money in it and good returns can be achieved.
At present, the government has declared an interest rate of 7.10 percent on PPF. The government changes it from time to time. But despite these changes, the interest rates in this scheme do not come down much. Any citizen of the country can open this account.
How much to invest
Under PF, you can invest a minimum of Rs 500 in a financial year. There is no limit on the maximum amount deposited. But you will get exemption under Section 80C of Income Tax up to a maximum of Rs 1.5 lakh. The interest income on maturity will also be completely tax free. This scheme is for 15 years, from which it cannot be withdrawn in the middle. But it can be extended for 5-5 years after 15 years.
Loan facility
Loan facility is available on investment in PPF. This facility is available for a period of five years. You can get a loan up to 25 percent of the amount deposited in your account. Loan can be taken only once in a financial year.
If deposited Rs 500 every month
Depositing Rs 500 for 15 years will make Rs 90,000. The interest on this will be Rs 67,784. Overall after 15 years you will get a total of Rs 1,57,784.
