Post Office PPF Scheme: Depositing ₹40,000 will give a return of ₹10,84,856

Post Office PPF Scheme i.e. Public Provident Fund Scheme is a safe and beneficial option for long term investment in India. This scheme is run by the government, which not only ensures the safety of capital but also provides good returns to the investors. Investment in this scheme can be started with a minimum of ₹500, making it attractive even for small investors.

Post Office PPF Scheme

The biggest advantage of Post Office PPF Scheme is that it can be opened in almost every bank and post office in the country. It works like a fixed deposit (FD), in which you deposit money and get the full amount including interest on maturity. It is an ideal scheme for those who are planning for a secure future by saving a part of their earnings.

15 years period, flexibility to investors

The investment period in PPF is 15 years. Even after completion of this period, investors can extend it for a period of 5-5 years. This scheme provides interest on the basis of compounding, which increases the fund in the long run.

The process of opening a PPF account is simple and it can be easily started in a post office or bank. Because of this, this scheme is equally beneficial for both investors from rural and urban areas.

Interest rate fixed by the government.

The interest rate of the Post Office PPF Scheme is fixed by the government, and can change every quarter. Currently, this rate is 7.1%. This interest is calculated after the fifth day of every month on the amount that remains the least in the account.

Investors should keep in mind that the benefit of interest in the PPF scheme is fully guaranteed by the government, making it safer than other private investment schemes.

Small investment will create a big fund

The specialty of this scheme is that by starting investing with a small amount, a good fund can be created in the long term. For example, if you deposit ₹ 40,000 every year and continue this process for 15 years continuously, then on maturity based on 7.1% interest rate, you will get an amount of about ₹ 10,84,856.

Tax benefit is also included

Another important benefit of PPF scheme is tax exemption. Under this scheme, the investor gets tax exemption under section 80C. This means that the investment made in PPF not only saves for the future but also helps in saving tax in the present.

This exemption makes this scheme even more beneficial for investors who are looking for tax saving options.

How to apply?

To open an account in Post Office PPF Scheme, you have to go to the nearest branch of the post office or bank. There you have to submit the required documents, such as identity card, address proof and passport size photo. Once the account is opened, you can invest regularly.

Golden opportunity to invest

Post Office PPF Scheme is an ideal option for those who want to ensure long-term investment as well as capital protection. To avail this, you only have to invest in a disciplined manner and keep the account active for the stipulated period.