Post Office Scheme: This post office scheme will generate a fund of Rs 40 lakh, note down the details now...

Everyone wants to invest a portion of their hard-earned money in a safe place, creating a good fund for the future. In this regard, the Post Office Public Provident Fund (PPF) scheme is considered an excellent option. This scheme is especially suitable for those who want tax-free returns at low risk and want to strengthen their savings over the long term.

The PPF scheme is run by the government, making it a completely safe investment. Investments earn good interest, and the maturity amount is tax-free.

Annual investment up to ₹1.5 lakh is possible.
You can open a PPF account at any post office or bank. If you invest the maximum limit of ₹1,50,000 per year, you get strong returns. This scheme comes with a lock-in period of 15 years, but it can be extended every 5 years after maturity.

7.1% annual interest, tax-free
The government currently offers 7.1% annual interest on this scheme, which is reviewed quarterly. The key point is that this interest is completely tax-free. This means that you don't have to pay any tax on the amount you invest, the interest earned, or the maturity amount. It is classified as EEE, meaning there are exemptions on all three: investment, interest, and maturity.

How will a ₹40 lakh fund be created?
Now the question arises: how will a ₹40 lakh fund be created? Suppose you invest ₹1.5 lakh every year. That means, if you save ₹12,500 every month and put it into this scheme, your total investment by the end of 15 years will be ₹22,50,000. At 7.1% interest, you will receive a guaranteed return of approximately ₹18,18,209. This way, you will receive a total of ₹40,68,209 upon maturity.

Loan and Partial Withdrawal Facility
Another special feature of PPF is that you can take out a loan if needed. Loan facility is available from the third year of account opening to the fifth year. Furthermore, once your account is five years old, you can also partially withdraw some of the amount. This means that if you open an account in 2020-21, you will be eligible for partial withdrawal in 2026-27.

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