There are many schemes that can make you rich if you know how to invest money properly. Post Office’s Public Provident Fund (PPF) is one such scheme. Post Office New Scheme: Pay from Rs 500 monthly, get up to Rs 1 crore.
If you save for long term in this post office scheme, it will be very useful to get more income.The special feature of this scheme is that your investment in it is completely safe. It is not affected by market fluctuations.Besides, there are tax benefits too. Provides tax benefits under Section 80C of the Tax Act.Post Office New Scheme: Pay from Rs 500 monthly, get up to Rs 1 crore
Interest earned and maturity amount in PPF are also tax free. These interest rates are fixed by the government. It is reviewed on a quarterly basis. The post office currently earns 7.1 percent annual interest on the PPF scheme.
In 2020 the interest will be up to 7.6 percent. But due to Corona epidemic and other reasons interest has decreased. You can open a Public Provident Fund (PPF) account at a post office or bank branch. This account can be opened from just Rs.500. Up to Rs.1.50 lakh can be deposited in this account annually.
The maturity of this account is 15 years. However, it can be extended from five years to another five years after maturity. If you deposit Rs.12,500 every month in a PPF account and manage it for 15 years, you will get a total of Rs.40.68 lakhs at maturity.
In this your total investment is Rs. 22.50 lakhs. By way of interest Rs. 18.18 lakhs is your income. This amount can be taken assuming an interest rate of 7.1% per annum for the next 15 years.
The maturity amount may change when the interest rate changes.If you want to become a millionaire through this scheme, you have to extend this maturity period from 15 years to another 10 years. That means, now your investment tenure is 25 years.
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Thus after 25 years your total corpus will be Rs. 1.03 crore.During this period your total investment is Rs. 37.50 lakhs. You will get Rs. 65.58 lakh will be received. It has a sovereign guarantee on the interest earned. If you want to extend the PPF account further, you should apply one year before the expiry. Account will not be extended after termination.
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