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: Life after retirement continues smoothly, for this it is necessary that when you retire, you have a good fund. For this, the 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 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 35 years, 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
One can invest a maximum of Rs 1.50 lakh in a PPF account in a year. It is currently getting 7.1 percent interest annually. 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 another 10 years. In such a situation, after 25 years, the entire fund of your PPF account will be more than 41 lakhs (Rs 41,23,206). In this, your investment will be 15 lakhs and interest income will be around Rs 26.23 lakhs.
Keep in mind here that the interest rate has been charged at 7.1 percent per annum for the entire tenure of the investment. Compounding in PPF happens annually. The interest rates are reviewed by the government every quarter. In such a situation, the maturity amount can fluctuate with the change in interest rates. It should be noted that if you want to extend the PPF account further, then the application has to be given one year before the maturity. The account cannot be extended after maturity.
PPF Scheme: Investment Completely Safe
Public Provident Fund (PPF) is such a scheme, in which if invested from a long term perspective, it will not only turn out to be a good fund. Rather, money will also be completely safe and tax will be completely saved. PPF can be opened at the post office or at Athraj Bank. At present, the interest rate on PPF is 7.1 percent per annum. The maturity 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 for investment up to Rs 1.5 lakh in the scheme. The interest earned and maturity amount in PPF is also tax free. In this way, investment in PPF comes under EEE category. Most importantly, the government sponsors small savings schemes. Therefore, the subscribers get complete protection on investment in this.
