This post office savings scheme offers a compound interest rate of 7.1 percent per annum. The maturity period of this plan is 15 years, but after that it can be extended for another 5 years. If you no longer need it at the end of the 15-year period, you can carry forward the fund.
If you don’t want to invest because you are afraid that you might lose your money, then you should invest in post office schemes. Here money is considered safe. Here you can invest in various schemes as per your convenience. There are some schemes in the post office, which also give you good profits in a few years. Especially depositing money in small savings schemes of the post office is a better option. In these option plans, you get to invest for short to long term. If you have a long term investment strategy then you should invest in Public Provident Fund.
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This post office savings scheme offers a compound interest rate of 7.1 percent per annum. The maturity period of this plan is 15 years, but after that it can be extended for another 5 years. If you no longer need it at the end of the 15-year period, you can carry forward the fund. As a result, you will get more compounding benefits.
The maximum amount that can be kept in this savings scheme is Rs 1.50 lakh every year. You can deposit Rs 12500 monthly instead of depositing Rs 1.50 lakh once in a year. Also, under Section 80C of the Income Tax Act, you can avail tax exemption on your PPF account. The interest and maturity income earned in this account is also tax-free. On an investment of Rs 22.5 lakh in a savings scheme, you are given an interest of Rs 18 lakh. Whose maturity is given as 15 years.
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Over 40 lakh funds in 15 years
If you invest Rs 12,500 in this scheme every month, you will have Rs 1.50 lakh in a year. At the same time, in 15 years, the total investment becomes Rs 22.50 lakh, on which you are given an annual interest rate of 7.1 percent. Based on the calculations, the maturity amount totals to Rs 40.70 lakh, with an interest benefit of Rs 18.20 lakh.
On deposit for 25 years
On depositing Rs 12,500 per month for 25 years, the amount of 40.70 lakhs becomes more than double. It carries an annual interest rate of 7.1 percent, which is levied every year on the total amount. The total investment amount in 25 years is Rs 37.50 lakh. And calculate it with interest benefit, then the total maturity amount becomes Rs 1.03 crore with interest benefit of Rs 62.50 lakh.
