If you want to save money for your future needs and want your investment to be safe, then the Public Provident Fund (PPF) scheme of the post office can be a great option for you. It is a long term small savings scheme run by the government, in which you get guaranteed returns as well as tax benefits.
What is Post Office PPF Scheme?
Post Office PPF Scheme is a long term investment scheme, in which you can invest for a period of 15 years. After this you can extend it twice for 5-5 years. In this scheme, you can invest every month or annually, so that you can get a large fund on maturity through small savings.
How to open a PPF account?
Go to the nearest post office.
Fill the PPF account opening form.
Submit the required documents (Aadhaar card, PAN card, passport size photo, etc.).
Start investing with a minimum of Rs 500.
You can invest up to Rs 1.50 lakh annually.
Interest received in PPF scheme
Currently, 7.1% annual interest is being given in the Post Office PPF scheme. This interest rate is higher than other fixed deposits (FD) and recurring deposits (RD), which gives more benefits to the investors.
Other benefits of PPF
Tax benefit: Up to Rs 1.5 lakh exemption is available under Section 80C of Income Tax.
No tax on interest: The interest you get on PPF is completely tax-free.
Loan facility: You can also take a loan on the invested amount from the third year.
How much return will be received on investing Rs 70000 annually?
If a person invests Rs 70,000 annually for 15 years, the total investment will be Rs 10,50,000.
Total interest in 15 years at 7.1% interest rate: ₹8,48,498
Total return on maturity: ₹18,98,498
Conclusion
If you are looking for a safe scheme with fixed returns and tax benefits, then Post Office PPF Scheme 2025 can be a great option for you
