Are you looking for an investment option that is both safe and tax-free? Then the Post Office Public Provident Fund (PPF) scheme is perfect for you! This scheme is a great option for long-term investors, and with the increase in interest rates in October, it has now become even more attractive.
Safe investment with 7.1% interest rate
The amount deposited in the Post Office PPF scheme is subject to the interest rate determined by the government, which may change every quarter. Currently, you are getting 7.1% interest rate on this scheme. This rate provides a fixed return with a government guarantee, allowing investors to invest with peace of mind. The interest received during the investment period is increased on the basis of compound interest, which further increases the benefit of returns.
Investment Terms and Process
The minimum amount of investment in the Post Office PPF scheme is ₹500 per month, and the maximum can be invested up to ₹1.5 lakh per financial year. The total tenure of the scheme is 15 years, after which you can extend it in blocks of 5 years. It is a long-term investment option that will see your wealth grow and remain safe over time. A PPF account can be opened easily by visiting any nearby post office with the required documents like Aadhaar card, PAN card and a passport size photo.
Possibility of Returns on PPF
Suppose you invest ₹100 daily, then ₹3000 will be accumulated in a month. If you continue this investment for a year, your amount will reach ₹36,000. Over a period of 15 years, your total investment will become ₹5,40,000. With this, the interest rate of 7.1% and the benefit of compound interest will give you around ₹3.5 lakh as interest. Thus, after 15 years, a total amount of ₹8,00,000 will be received, which will include both your principal and interest.
Process of opening a PPF account
To open a PPF account, you first have to go to your nearest post office. There you have to fill an application form and also submit your identity proof, such as Aadhaar card, PAN card and a photo. After this, your PPF account will be activated after paying the prescribed amount of the month you choose.
Frequently Asked Questions (FAQs)
What is the maximum amount to invest in PPF scheme?
A maximum of ₹1.5 lakh can be invested in a financial year in the Post Office PPF scheme.
When does the interest rate change in PPF account?
The interest rate in PPF account changes on a quarterly basis, which is decided by the government.
Can a PPF account be opened for children?
Yes, PPF account can be opened for children too, but this account will be opened by their parents or legal guardian.
This article is for informational purposes only. Consult a financial advisor before investing.