Depositing money in post office small savings schemes is a better option. If you have a long-term investment strategy, then you can invest in Public Provident Fund.
Post Office Scheme: If you do not want to invest because you are afraid that you may lose money, then you should invest in post office schemes. Here money is considered safe. Here you can invest in various schemes as per your convenience. There are some schemes in the post office, which also give you good profits in a few years. Especially depositing money in small savings schemes of the post office is a better option. If you have a long-term investment strategy, then you can invest in Public Provident Fund.
So much interest is available on post office PPF
This post office savings scheme offers 7.1 percent compound interest rate per annum. The maturity period of this plan is 15 years, but after that it can be extended for another 5 years. If you no longer need it at the end of the 15-year period, you can carry forward the fund. This will give you the benefit of compounding benefits.
Can invest so much
You can invest a maximum of Rs 1.50 lakh every year in this scheme. You can also deposit Rs 12500 monthly instead of depositing Rs 1.50 lakh in a year. Apart from this, you can also get tax exemption on PPF under Section 80C of the Income Tax Act. The money earned on its interest is also not taxed. On an investment of Rs 22.5 lakh in a savings scheme, you are given an interest of Rs 18 lakh. The maturity of which is in 15 years.
Over 40 lakh funds in 15 years
If you invest Rs 12,500 in this scheme every month, you will have Rs 1.50 lakh in a year. That is, you have to save 416 rupees per day. At the same time, in 15 years, the total investment becomes Rs 22.50 lakh, on which you are given an annual interest rate of 7.1 percent. The maturity amount comes to a total of Rs 40.70 lakh, with an interest benefit of Rs 18.20 lakh.
25 years will get so much money
On depositing Rs 12,500 per month for 25 years, the amount of 40.70 lakhs becomes more than double. If the annual interest rate is applicable from 7.1 percent only, then the total investment amount in 25 years is Rs 37.50 lakh. And with the benefit of interest, Rs 62.50 lakhs interest is available i.e. Rs 1.03 crores will be available on maturity.
