Public Provident Fund is a government guaranteed scheme, through which substantial 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 way for investors who want safe investment and guaranteed returns. Like banks, many schemes are also run in post offices. Post Office Public Provident Fund is a special scheme for long term investors. This scheme is also available in banks. Interest is given in PPF at the rate of 7.1 percent. A minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in this scheme. 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 add a big amount even by small savings every day. If you invest Rs 7500 every month, you will have to save Rs 250 daily. Accordingly, you will invest Rs 90,000 annually in the PPF scheme. PPF is a 15 year scheme. In such a situation, if you calculate according to PPF calculator, then according to 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 tax point of view
PPF is also considered a good scheme from the point of view of tax saving. 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 on this amount every year and the entire amount received at the time of maturity is tax free. In this way, in this scheme falling under EEE category, there is saving of tax on all three – investment, interest/return and maturity.
Loan facility also
PPF account holders also get the facility of loan in this. You get the loan on the basis of the amount deposited in your PPF account. This loan is cheaper than unsecured loan. As per rules, the interest rate on PPF loan is only 1% more than the interest rates on PPF account. That means if you are taking 7.1% interest on PPF account, then you will have to pay 8.1% interest on taking the loan.
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