Post Office Scheme: The Public Provident Fund of the post office gives you a chance to become a millionaire. You just have to invest Rs 417 in this account everyday.
Post Office Scheme: Public Provident Fund of the post office gives you a chance to become a millionaire (Post Office Scheme PPF). You just have to invest Rs 417 in this account everyday. Although the maturity period of this account is 15 years, but you can extend it twice for 5-5 years. Along with this, you also get tax benefit in this plan. The most important thing is that you get 7.1 percent interest annually in this plan and also gives you the benefit of compound interest every year. Let us also tell you how this scheme can make you a millionaire.
Know Post Office PPF Account Details
If you invest for 15 years i.e. till maturity and deposit a maximum of Rs 1.5 lakh annually i.e. Rs 12500 a month or Rs 417 a day, then your total investment will be Rs 22.50 lakh. That is, you will get the benefit of compounding interest along with the annual interest of 7.1 percent at the time of maturity. At the time of maturity, you will get Rs 18.18 lakh as interest. That is, you will get 40.68 lakh rupees.
How will you become a millionaire?
If you want to become a millionaire from this scheme, then you will have to increase this scheme twice after 15 years for 5-5 years. By investing Rs 1.5 lakh annually, your total investment will be Rs 37.50 lakh. After maturity, you will get Rs 65.58 lakh with 7.1 percent interest rate. That is, after 25 years, your total fund will be Rs 1.03 crore.
Who can open PPF account
- Any resident including Salaried, Self Employed, Pensioners etc. can open an account in the PPF of the Post Office.
- Only one person can open this account. In this you cannot open a joint account.
- Minor PPF account can be opened in the post office by the parent/guardian on behalf of the minor child.
- Non-resident Indians cannot open an account in it. If a resident Indian becomes an NRI before the maturity of the PPF account, he can continue to operate the account till maturity.
Required documents of post office PPF account
- Identity Proof – Voter ID, Passport, Driving License, Aadhar Card
- Address Proof – Voter ID, Passport, Driving License, Aadhar Card
- PAN Card
- Passport Size Photograph
- Enrollment Form – Form E
Features of Post Office PPF Account
1. The maximum deposit allowed in a PPF account during a financial year is Rs 1.5 lakh.
2. The number of deposits in Post Office PPF is limited to 12 per annum.
3. The principal amount, interest earned and maturity amount invested in PPF are all tax-free.
4. The minimum annual investment required to keep the account active is Rs 500.
5. Compounding interest is paid annually on the post office PPF account on 31st March.
