Post Office Scheme: The specialty of PPF is that the investment in it is completely safe and the returns are also guaranteed. Anyone can invest in PPF.
Post Office Scheme: For life to go smoothly after retirement, it is necessary that you have a good corpus when you retire. For this, Post Office Scheme Public Provident Fund (PPF) is a better option. PPF is a good option for long-term financial needs such as retirement funds. Its maturity period is 15 years. The specialty of PF is that the investment in it is completely safe and the returns are also guaranteed. Anyone can invest in PPF. This is a voluntary scheme. If you start investing in this scheme even at the age of 35, then at the age of retirement i.e. 60 years, you can make a corpus of more than 41 lakhs.
PPF: Fund of 41 lakhs in 25 years
A maximum of Rs 1.50 lakh can be invested in a PPF account in a year. At present, it is getting 7.1 percent interest per annum. Suppose, you start investing Rs 5,000 every month (Rs 60,000 annually) in a PPF account. After maturity in 15 years, you maintain the account in blocks of 5-5 years and for the next 10 years. In such a situation, after 25 years, the entire fund of your PPF account will be more than 41 lakh (Rs 41,23,206). In this, your investment will be Rs 15 lakh and interest income will be around Rs 26.23 lakh.
Keep in mind here that the interest rate has been charged at the rate of 7.1 per cent per annum for the entire tenure of the investment. There is annual compounding in PPF. Interest rates are reviewed by the government every quarter. In such a situation, the maturity amount may fluctuate with the change in interest rates. Keep in mind that if you want to extend the PPF account further, then you have to apply one year before the maturity. The account cannot be extended after maturity.
PPF Scheme: Investment completely safe
Public Provident Fund (PPF) is one such scheme, in which if invested from a long-term perspective, it will prove to be not only a good fund. Rather, money will also be completely safe and tax will also be completely saved. PPF can be opened at post office or Athraj Bank. At present, the interest rate on PPF is 7.1 per cent per annum. The maturity period of this account is 15 years, which can be extended in blocks of 5-5 years.
The biggest advantage of this scheme is that it provides tax benefits under section 80C of the Income Tax Act. In this, deduction can be taken on investment up to Rs 1.5 lakh in the scheme. The interest earned and maturity amount in PPF is also tax free. Thus, investment in PPF comes under EEE category. Most importantly, the government sponsors small savings schemes. Hence the subscribers get complete protection on investment in it.
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