Post Office PPF scheme, know how to earn money: Small savings in life are great. Through this savings, you can benefit a lot in difficult times.
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But many times we do not have the correct information about the plans. While there are some schemes in which you can become a millionaire by investing. We are going to tell you about one such scheme. Actually, there are many such schemes of the government, in which investors get guaranteed returns on investment and money is also completely safe.
Post Office
Public Provident Fund (PPF) is such a scheme, in which if invested from a long term perspective, it will easily become a fund of lakhs of rupees. In this your money will also be completely safe and tax will also be saved. If you invest daily savings of Rs 150 in PPF every month, then for 15 years, a fund of about Rs 15 lakh can be easily created. In this scheme, investors get tremendous benefit of compounding.
How to make a fund of 15 lakh from 150,Â
in the PPF of the post office, investors get the power of compounding. Now suppose you save Rs 150 daily, you save Rs 4,500 monthly and you invest it in PPF. Your investment became Rs 54,000 annually. When your PPF account will mature in 15 years, when you will get Rs 14,64,555 lakh. PPF is currently getting 7.1 percent interest annually and if the same interest rates remain till maturity, then it will be easy for you to create a corpus of 15 lakhs. Compounding in PPF is done on an annual basis. It is important to know here that the government changes the interest rates on a quarterly basis in the PPF account.
PPF: Maturity is 15 years
The maturity of PPF account is 15 years. But account holders can apply for extension in blocks of 5-5 years. In this, he also gets the option to continue the contribution or not. The advantage of this is that in the long term, you can make a big fund. The government sponsors small savings schemes. Therefore, the subscribers get complete protection on investment in this. It has a sovereign guarantee on the interest earned which makes it more secure than the interest earned by the bank.
PPF: Benefit of tax exemption in EEE category
In PPF, tax benefits are available under section 80C of the Income Tax Act. In this, deduction of investment up to Rs 1.5 lakh can be taken in the scheme. The interest earned and maturity amount in PPF is also tax free. In this way, investment in PPF comes under EEE category. Loan facility is also available against PPF account. One can apply for the loan after the completion of one year from the end of the year in which the PPF account has been opened and before the completion of 5 years.
