Post Office Public Provident Fund scheme offers better returns and security. In this, the amount received on maturity is also tax free, this benefits the investors.
The post office scheme is considered better in terms of security. There are many schemes in this which can also get great returns. One of these is Public Provident Fund Scheme ie PPF. With an investment of Rs 100 per day in this scheme, you can get an amount of more than 9 lakhs. In this plan with a tenure of 15 years, you will also get the benefit of many other facilities including taking a loan.
These post office schemes are not only safe and risk-free, but they also give returns up to double as compared to bank deposits. At present, an interest rate of 7.1 percent is being given on PPF. The government changes it from time to time. Under this scheme, you can deposit any maximum amount in a financial year. However, you will get exemption under Section 80C of Income Tax up to a maximum of Rs 1.5 lakh.
Benefits of the scheme
- You get the facility of loan against PPF. From the financial year from which you start investing, you get loan facility from the next financial year. You can take this benefit for a period of five years. The loan amount is available up to 25 percent of the amount deposited in the account. Loan can be taken only once in a year.
- This scheme has a lock-in period of five years. After this, money can be withdrawn once in a financial year. This can be up to 50 percent of the amount deposited in your account.
- If the account holder becomes ill or needs money for higher education of self or children, then the account holder can take advantage of the facility of premature closure. However, some charges will be deducted during this period.
- Interest income on maturity will be completely tax free. Its maturity period is 15 years. If you want, you can extend it further for 5 years.
How to get 9 lakhs
If you invest 100 rupees daily and do it for 15 years then the total deposit amount will be 547500 rupees. According to the current interest rate, when the scheme matures, you will get a lump sum of about Rs 989931 which will be completely tax free.
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