Public Provident Fund is a government guaranteed scheme, through which a lot of savings can be made in the long term and tax benefits can also be availed. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in this scheme.
Post office is a better option for investors who want safe investment and guaranteed returns. Like banks, many schemes are also run in post offices. A special scheme of post office for long term investors is Public Provident Fund. This scheme is also available in banks. PPF gives interest at the rate of 7.1 percent. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested in this scheme annually. If you want, you can add a good amount of funds through this scheme. You can also avail tax benefits on this scheme.
Save ₹ 250 daily and add more than 24 lakh
If you want, you can save a large amount by saving small amounts every day. If you invest Rs 7500 every month, then you will have to save Rs 250 every day. According to this, you will invest Rs 90,000 annually in PPF scheme. PPF is a 15-year scheme. In such a situation, if you calculate according to the PPF calculator, then at the rate of Rs 90,000, you will invest a total of Rs 13,50,000 in 15 years. On this, you will get Rs 10,90,926 as interest at the rate of 7.1 percent and in 15 years you will get Rs 24,40,926.
Very good scheme from the tax point of view
PPF is also considered a good scheme in terms of tax savings. This is a scheme of EEE category i.e. Exempt Exempt Exempt category. In this, there is no tax on the amount deposited every year, the interest earned every year on this amount and the entire amount received at the time of maturity is tax free. In this way, in this scheme coming under EEE category, there is tax saving in investment, interest/return and maturity.
Loan facility is also available
PPF account holders also get the facility of loan in it. You get loan on the basis of the amount deposited in the PPF account. This loan is cheaper than an unsecured loan. According to the rules, the interest rate of PPF loan is only 1% higher than the interest rates of PPF account. That is, if you are getting 7.1% interest on PPF account, then you will have to pay 8.1% interest on taking a loan.
