Public Provident Fund is one such great scheme, which you can consider as a long term savings option. The special thing about this plan is that apart from investing in it, you can invest like SIP.
By the way, many new ways of saving and investing have come these days. But even today a large section of the country deposits its money in the schemes of the post office. At the same time, the post office also woos its customers with various schemes. Here you will get many types of savings options, by investing in which you can get good returns. So let us tell you today about the Public Provident Fund Scheme of the Post Office.
What is Public Provident Fund?
Public Provident Fund is one such great scheme, which you can consider as a long term savings option. The special thing about this plan is that apart from investing in it, you can invest like SIP. In this scheme, you can deposit a maximum of 1.5 lakh rupees in a year.
In this scheme, you can get big returns
The interest on this scheme is more than FD or RD, that is, in this scheme, you can get big returns by depositing money in small amounts every month. Even in this, no tax is levied on interest and maturity income.
How Post Office PPF Calculator Works?
Suppose you deposit 5 thousand rupees in your PPF account every month, that is, you will deposit 60,000 rupees in the whole year. On which a compounding rate of interest of 7.1 will be charged. So in such a situation, if you deposit for 15 years, then your total investment will be 9 lakh rupees. At the same time, your maturity amount will be Rs 16.25 lakh, and your interest amount will be Rs 7.25 lakh.
Know what are the benefits of Post Office PPF
Under this scheme you can invest 1.5 lakh rupees in a year. It can also be given in 12 installments. If you want, you can also open PPF account of your children. Children below the age of 10 years can also open a PPF account, which can be looked after by the parents themselves. Not only this, if the scheme matures after 15 years, then you can extend it for 5 years. There is no risk of losing money in this. On the basis of this account, you can also take a loan from the bank. You will not have to pay any tax on this money.
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