Post Office Public Provident Fund gives you a chance to become a millionaire. 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 benefits in this scheme.
New Delhi: 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. 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. At the same time, the most important thing is that you get 7.1 percent interest annually in this plan and which also gives you the benefit of compounding 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 in a month and Rs 417 in a day, then your total investment will be Rs 22.50 lakh. At the time of maturity, you will also get the benefit of compounding with an annual interest of 7.1%. At the time of maturity, you will get Rs 18.18 lakh as interest. This means that you will get 40.68 lakh rupees.
How will you become a millionaire?
On the other hand, if you want to become a millionaire from this scheme, then you can extend your investment by this scheme twice for 5-5 times after 15 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.
A 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
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. PPF is an EEE investment i.e. the principal amount invested, interest earned and maturity amount are all tax-free.
4. The minimum annual investment required to keep the account active is Rs.500.
5. Interest on Post Office PPF account is compounded annually and paid on 31st March every year.