PPF Account: PPF Scheme is quite popular for safe investment and strong returns. The government is offering a strong interest of 7.1 percent on investing in this scheme. Investment has to be made for 15 years.
PPF Account: Everyone saves some amount of his income and wants to invest it in a place where his money is not only safe but also gets strong returns. Although there are many saving plans for this, but among all these, there is a government scheme which is quite popular. Yes, we are talking about the Public Provident Fund of the post office, it has great benefits in terms of long term investment. In this scheme, you can collect a fund of Rs 24 lakh for yourself by saving just Rs 250 per day. Let’s know how…
More than 7% interest and tax benefits
Public Provident Fund not only offers a great interest on investment, but the government itself guarantees the safety of your investment. Talking about PPF Interest Rate, a strong interest of 7.1 percent is offered on investing in it. Along with this, tax benefits are also available in the post office scheme. That is, along with great returns, it is also great in terms of savings.
PPF scheme is an EEE category scheme, that is, whatever investment is made in it every year is absolutely tax free. Apart from this, investors do not have to pay any tax on the interest received as well as the fund received on maturity.
How will you be able to deposit Rs 24 lakh?
Now let’s talk about how and by when can you collect a fund of Rs 24 lakh with a daily saving of just Rs 250 in this scheme. So its calculation is also very easy. If you save Rs 250 daily, then your monthly savings become Rs 7500 and if you look at it on an annual basis, you save Rs 90,000. You will have to invest this money in PPF every year for 15 years.
Actually, the investment limit in PPF Scheme is 15 years. That is, in 15 years, at the rate of Rs 90,000 every year, your total deposit will be Rs 13,50,000 and if you look at the interest rate of 7.1 percent on it, then it will become Rs 10,90,926 and you will get a total of Rs 24,40,926 on maturity.
You can open an account with Rs 500
You can open an account in the Post Office Public Provident Fund Scheme with just Rs 500 and a maximum investment of up to Rs 1.5 lakh can be made in it every year. Apart from returns and tax benefits, you also get the benefit of loan facility. The special thing is that the loan taken on PPF investment is cheaper than an unsecured loan.
Under investment in this scheme, loan is given on the basis of your deposit amount and for this you have to pay up to one percent more than the interest received in the scheme. That is, if you take a loan through PPF investment, then you will get interest at the rate of 8.1 percent.
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