In today’s times, everyone wants their money to be kept in a place that provides security and strong returns. If you dream of becoming a millionaire without any risk, while staying away from the fluctuations of the stock market, the Post Office Public Provident Fund (PPF) scheme is nothing less than a boon for you. In the financial world, it is considered a “powerhouse of safe investments.” This scheme is the best option for those looking to build a large corpus for their children’s higher education, marriage, or retirement.
Government Guarantee and EEE Benefits
Tax is always a concern for the average investor, but those investing in PPF receive significant relief. This scheme falls under the “EEE” (Exempt-Exempt-Exempt) category. This means that the principal amount invested is tax-free, the annual interest earned is tax-free, and the entire maturity amount is completely tax-free.
Under Section 80C of the Income Tax Act, you can avail a tax exemption on investments up to ₹1.5 lakh annually. This is a scheme backed by the Government of India in terms of security. While bank FDs are insured only up to a certain limit, every penny of your money in PPF is completely protected under the government’s sovereign guarantee. This security makes it one of India’s most reliable savings schemes.
A good loan facility
No one knows when you might need money in life. This post office scheme serves as a solid foundation for such emergencies. Between the third and sixth year of account opening, you can also take a loan against your deposited funds. This facility is very useful in emergencies, as the interest rates on this loan are much lower than those on personal loans, and it is also easy to repay.
Furthermore, PPF offers considerable investment flexibility. You are not forced to deposit a large sum every month. You can invest a lump sum once a year or make small investments in 12 installments, depending on your convenience. The minimum investment can start from ₹500 annually, making it accessible to all income groups.
How to make ₹43 lakh with ₹411 investment
Currently, the government is offering an attractive interest rate of 7.9% on this scheme. If you save just ₹411 daily, your monthly investment amounts to approximately ₹12,500. This translates to a total investment of ₹1.5 lakh in a year. The maturity period of PPF is 15 years.
If you deposit ₹1.5 lakh every year, you will have a solid fund of approximately ₹43.60 lakh after 15 years. The most interesting thing is that you will only deposit ₹22.5 lakh from your pocket, while the remaining approximately ₹21.10 lakh will be earned as pure interest.
Now invest from the comfort of your home
You no longer need to go to the post office or stand in long lines like you did in the old days. With the Digital India campaign, post offices have also become high-tech. Now, you can manage your PPF account from the comfort of your home through India Post Payments Bank (IPPB) or the DakPay app.
You just need to link your IPPB account to your main bank account. Once linked, you can transfer funds in just a few clicks by selecting the PPF option in the app. This not only saves time but also makes your investments easier and more modern. You can view your passbook from anywhere and track the growth of your steel funds.
The post Post Office PPF Scheme: Invest ₹411 Daily, Build ₹43 Lakh Without Any Risk appeared first on Times Bull.