One of the options for safe and reliable investment in India is Post office Public Provident Fund (PPF) SchemeThis scheme is especially for those who want to keep money safe for long periods and also want to save in tax. Between rising inflation and uncertain economic conditions, the PPF scheme has emerged as a stable and reliable investment option.
In the investor, the government gets a guaranteed interest rate, which is currently 7.1% per year Is. In this scheme, you can deposit a certain amount every month or annually, which gives a big return after 15 years. For example, if you every month ₹ 12,000 deposit Do you almost at the end of 15 years Return of ₹ 32 lakh Can be found.
It not only increases your money, but also gives a chance to save tax. In this article, we will give complete information about the post office PPF scheme in simple and understandable language.
What is Post Office PPF Scheme?
Post Office PPF (Public Provident Fund) scheme is a government savings scheme that comes with a 15-year lock-in period. The scheme is supported by the Government of India and the investor in it gets returns at a fixed interest rate. The purpose of the PPF scheme is to save people for a longer period and provide economic security for the future.
In this scheme you Minimum ₹ 500 And Maximum ₹ 1.5 lakh per financial year Can deposited. The interest on the deposit is tax free, and at the same time, tax exemption is also available under Section 80C of the Income Tax Act. You can open a PPF account in any post office or authorized bank branch.
Post Office PPF Scheme:
| Speciality | Description |
|---|---|
| Name of the scheme | Public provident fund |
| Investment period | 15 years (lock-in period) |
| Minimum investment | ₹ 500 per financial year |
| Maximum investment | ₹ 1.5 lakh per financial year |
| Interest rate | 7.1% per year (annual compound) |
| Tax on interest | Tax free |
| tax benefit | Discount up to ₹ 1.5 lakh under Section 80C |
| Account opening | Post office or authorized bank |
| Account holder | Indian resident person (minor or adult) |
| Loan facility | Loan available between 3 and 6 years |
Benefits of Post Office PPF Scheme
- Safe investment: The scheme is supported by the Government of India, so investment in it is completely safe.
- Long -term benefits: Your money increases with compound interest in a 15-year lock-in period.
- Tax Savings: There is a tax exemption under Section 80C on investment, as well as no tax on interest and maturity amount.
- Loan facility: Between 3 and 6 years you can also take a loan from your PPF account, which is useful for emergency needs.
- Easy account opening: Account can be opened in post office or authorized bank branch through simple procedure.
- Unlimited expansion: After 15 years you can increase your account indefinitely in a 5-5 year block.
Return calculation on depositing ₹ 12,000 per month in Post Office PPF
| Year | Total deposit (₹) | Estimated amount (₹) (at 7.1% interest rate) |
|---|---|---|
| 1 | 1,44,000 | 1,54,224 |
| 5 | 7,20,000 | 9,00,000 (approx) |
| 10 | 14,40,000 | 19,50,000 (approx) |
| 15 | 21,60,000 | 32,00,000 (approx) |
This zodiac increases due to consolidation interest, which increases your investment rapidly over time.
How to open Post Office PPF Scheme?
- Fill the application form: Take a form of opening PPF account from the nearest post office or authorized bank branch or download online.
- Submit the necessary documents: Identity card (eg Aadhaar card, PAN card), address proof, passport size photo.
- Submit minimum amount: Submit minimum ₹ 500 for the first time.
- Activate the account: After deposit your PPF account will be activated and you will get a passbook.
- Regular deposit: Submit at least ₹ 500 in every financial year so that the account remains active.
Important things about ppf scheme
- The PPF account duration is 15 years, which you can extend in additional blocks of 5 years.
- You can invest up to ₹ 1.5 lakh every year, which is the limit of tax savings.
- The interest on the amount deposited in the PPF account is tax free.
- Between 3 and 6 years you can take a loan from an account, which can be up to 25% of your account balance.
- After completion of the account period, you can withdraw the entire amount or expand the account.
Eligibility for PPF Scheme
- Only Indian residents can invest in the scheme.
- Parents or parents can open an account for a minor.
- A person’s name can only be a PPF account.
PPF scheme disadvantages
- You cannot withdraw money quickly due to a 15-year long lock-in period.
- The interest rate is stable compared to the market, so high returns are expected.
- If you do not deposit minimum on time, the account may be inactive and a fine has to be paid to re -activate.
conclusion:
The Post Office PPF scheme is a safe, reliable and tax -beneficial investment option that gives good returns in the long term. If you deposit ₹ 12,000 every month, you can get up to about ₹ 32 lakh after 15 years. This scheme is particularly suitable for those who want to avoid risk and increase their savings.
Disclaimer: The Post Office PPF scheme is a real and government -backed scheme. Investment in this is safe and interest rate is fixed. However, select the plan keeping in mind your financial status and investment target before investing. There is a risk in any investment, so it is beneficial to consult a consultant.
