Man wants maximum return on his hard earned money. But safety is more important for him. He wants that the money should also be guaranteed not to sink. If the money is not safe then there is a possibility of loss and if there is no guaranteed return then there is no use of investment.
Together you can get such benefits by investing in post office schemes. If you are planning to invest in any post office policy, then we are telling you that you should invest money in Public Provident Fund. In this, where your money will be safe, you will also get guaranteed returns. The maturity period of PPF is 15 years. With this, you can create a fund of lakhs of rupees by depositing about 70 rupees a day.
Benefit of Compound Interest
This account matures in 15 years. The money deposited in this account earns compound interest. From April 1, 2020, the government is paying an interest of 7.10 percent on this account. Suppose a person has deposited Rs 1,000 in PPF account every month. The deposit amount of Rs 1000 will become Rs 1,80,000 in 15 years.
On this you will get interest of Rs 1,35,567. Add both the amounts after 15 years on maturity it will be Rs 3,15,567. If a person deposits 2 thousand or 24 thousand rupees annually every month, then his total deposit amount will be Rs 3,36,000. 2,71,135 will be available as interest on this. Adding the total money, the depositor will get Rs 6,31,135 in his hand.
Maturity amount may increase due to increase in interest rates
It is to be noted that the interest rates of post office schemes are reviewed every quarter. That is, it is possible to change them every quarter. By the way, there has been no change in the interest rates of post office schemes for the last several quarters. If someone invests Rs 2000 every month in PPF and the interest rates increase, then his maturity amount will increase.
Account can be closed prematurely
First, if due to any reason there is a need for money before 15 years, then you can withdraw money from PPF account even before the maturity period. You can withdraw full amount from PPF account on medical ground. This is because if the account holder, life partner or any dependent falls in the grip of serious illness, then withdrawal of money is allowed. You can also close the PPF account prematurely if there is a need for money for the higher education of the children. On the death of the account holder, the nominee can withdraw the money.
Who can open PPF account
Any Indian citizen can open a PPF account. Account can also be opened in the name of minor. You will need at least Rs 500 to open a PPF account. Apart from the post office, PPF account can also be opened in branches of banks.
