Post Office Scheme: Middle class people are often not in a position to take much risk, so they often prefer to choose investment options in which they get guaranteed returns. For such people, the Public Provident Fund (PPF) scheme of the post office can be useful to you. Any Indian citizen can invest in this scheme.
At present the interest rate in this scheme is 7.1 percent. You can open PPF account anywhere in post office or bank. In this you get the benefit of compounding. If you want, you can add so much money through PPF scheme that you can fulfill every need from marriage of children to buying a house. Know how here-
Know how Rs 66,58,288 will be added
According to the rules, investment in PPF scheme can be started with Rs 500, while you can deposit a maximum of Rs 1.5 lakh every year. This scheme is for 15 years, but you can extend it in blocks of 5 years. If you invest Rs 1.5 lakh every year in PPF for 15 consecutive years, your total investment will be Rs 22,50,000, but including 7.1 percent interest, you will get total money of Rs 40,68,209.
Whereas if you increase it once in a block of 5 years and continue the same investment for the next 5 years, then you will invest a total of Rs 30,00,000 in 20 years. According to 7.1, you will get Rs 36,58,288 as interest and on maturity you will get a total of Rs 66,58,288. With this amount you can easily fulfill the needs of marriage, children’s higher education and housing. Even if you start investing in PPF at the age of 25, you will become the owner of this amount at the age of 45.
Be sure to know these rules related to PPF extension
- Only citizens residing in India can get PPF extension. Indian citizens who have taken citizenship of any other country are not allowed to open a PPF account or if they already have an account, they are not allowed to increase it.
- For PPF extension, first of all you have to submit the application in the bank or post office where you have your account. You will have to submit this application before completion of 1 year from the date of maturity.
- If the period of PPF account is extended for 5 years on your application, then you will have to deposit at least Rs 500 every year. If you do not deposit this minimum amount your account will be closed. To restart it, you will have to pay a fine of Rs 50 per year.