If you are looking for a long term investment option that offers good returns, Post Office Public Provident Fund (PPF) may be a good option.
Post Office Scheme: If you do not want to invest because you are afraid that you may lose your money, then it would be better for you to invest in Post Office Savings Scheme. Investing money here is considered the safest because it comes with government security. The post office has some schemes that can give you a good profit in a few years. If you are looking for a long term investment option that offers good returns, Post Office Public Provident Fund (PPF) may be a good option.
Interest is available on Post Office PPF
Post Office Savings Scheme PPF pays compound interest of 7.1 per cent per annum. The term of this plan is 15 years. After that it can be extended for another 5 years. If you do not need the money after 15 years, you can proceed with this fund.
You can invest so much
You can invest a maximum of Rs 1.50 lakh per year in this scheme. Instead of depositing Rs 1.50 lakh in a year, you can also deposit Rs 12,500 per month. Also, you can get tax exemption on PPF under section 80C of the Income Tax Act. The money earned on its interest is not taxed. By investing Rs 22.5 lakh in a savings scheme, on maturity of 15 years, you will get interest of Rs 18 lakh.
Can get so much interest
If you invest Rs 12,500 per month in this scheme, you will get Rs 1.50 lakh per year. At the same time, in 15 years, the total investment will be Rs 22.50 lakhs, on which you will get an annual interest rate of 7.1 percent. At maturity, the total fund will be Rs. 40.70 lakhs with interest benefit of Rs. 18.20 lakhs.
You will get so much money after 25 years
If you deposit Rs 12,500 per month for 25 years, the amount of Rs 40.70 lakh more than doubles. If the annual interest rate applies to 7.1 per cent, then the total investment in 25 years is Rs. 37.50 lakhs. And with the benefit of interest, Rs 62.50 lakh will be available, i.e., maturity of Rs 1.03 crore will be available.
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