If you are looking for a secure investment and want to make your small savings a big fund in the future, the Post Office Public Provident Fund (PPF) plan can be a great option for you. Not only is the scheme safe but also the benefit of tax savings and attractive interest rates.
It is very easy to invest in the post office PPF plan. Currently, the scheme is getting 7.9% interest annually, which offers a very attractive return in the long run. If you save ₹ 12,500 per month, or about ₹ 411 per day, a total of ₹ 1.5 lakh will be deposited in one year. The maturity of the scheme is 15 years. During this time, if you continue to invest ₹ 1.5 lakh annually, after 15 years you can get a fund of about ₹ 43.60 lakh. About ₹ 21 lakh will only be in the form of interest.
The biggest feature of the PPF scheme is that the interest and the amount deposited in it are completely tax -free. This exemption is available under section 80C of the Income Tax. That is, you are not only saving, but you do not need to pay any taxes on that savings. Therefore, this plan is especially beneficial for investors who want to invest a long -term investment with tax saving.
PPF is a fully supported plan by the Government of India. Therefore, the investment made in it is not only safe, but also offers more interest than the bank's fixed deposit (FD). This is the reason why the scheme is becoming the first choice of millions of investors. If you want, you can deposit the unit amount in the PPF account or you can also invest in monthly 12 installments. This flexibility gives investors the opportunity to join the scheme as per their facility.
Between the third and sixth year of opening a PPF account, you can also take a loan on your deposit amount. This option is very helpful in emergency situations. What is special is that this loan is available at a lower interest rate and can be easily paid.
In the digital age, the post office has also served its services online. Now you can transfer money directly from your bank account to the PPF account through India Post Payments Bank (IPPB) or Dakpe app. For this, you just have to link your IPPB account to your bank account, then select the PPF option in the application and fill in the required details.
