Post Office PPF Scheme: Deposit Rs 50,000 annually in the name of children, you will get Rs 34 lakh after 25 years

 

Post Office PPF Scheme: Public Provident Fund has always been considered a safe and tax-free investment option. This is a small savings scheme of the Government of India. It gives returns with government guarantee. If you deposit Rs 50,000 every year, then after 25 years, a fund of more than Rs 34 lakh will be ready.

Post Office PPF Scheme: Lakhs of Indians invest in Post Office schemes. It is still considered the most reliable option for savings. There is no risk of any kind in investing here. Returns are guaranteed. Post Office has great schemes for everyone, from children, women to senior citizens, included in this list is the Post Office Public Provident Fund Scheme, which is considered better in terms of investment. You can create a huge fund by depositing money in this scheme.

Public Provident Fund (PPF) has always been considered a safe and tax-free investment option. It is a small savings scheme of the Government of India. The central government is currently giving an annual interest of 7.1 percent on PPF. Money has to be deposited in the PPF account at least once a year. If you want, you can invest lump sum in PPF account in a year or you can also deposit money in installments. A minimum of Rs 500 and a maximum of Rs 1.50 lakh can be deposited in a PPF account in a year.

How much fund will be there if you deposit Rs 50,000 annually

The biggest strength of PPF is compounding. That is, the sooner you start investing, the more time your money will get to grow. By the way, a small investment started at the age of 20-25 can create a much larger corpus than a big investment started at the age of 40-50. PPF account matures in 15 years. If you want, you can extend it for the next 5 years by filling a form.

Any PPF account can be extended for 5-5 years and run for a maximum of 50 years. PPF account can be opened in any bank. If you want, you can also open a PPF account by going to your nearest post office. If you deposit Rs 50,000 every year in your PPF account, then after 25 years you will get a total of Rs 34,36,005. Let us tell you that this includes Rs 12,50,000 of your investment and Rs 21,86,005 of interest.

Tax benefits in PPF

PPF falls under the Triple-E (Exempt-Exempt-Exempt) category. This means that it offers tax exemption at three levels. First – you will get tax exemption under section 80C on investment up to ₹ 1.5 lakh every year. Second – the interest received on the investment will be completely tax-free and third – no tax is to be paid on the entire amount received on maturity of 15 years. This is the reason why PPF is considered more beneficial than options like FD.

Avoid premature withdrawal

PPF is a long term and safe investment scheme with a maturity timing of 15 years. However, in urgent situations, you can make a partial withdrawal after 5 years, but doing so may affect the compound interest on your investment.

Disclaimer – This story is for information only. Consult your financial advisor before investing.

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