For investors seeking security and guaranteed returns, the post office offers an array of schemes akin to those provided by banks.
Among them, the Post Office Public Provident Fund stands out as a special scheme catering to long-term investors, also available in banks.
With an interest rate of 7.1 percent, this scheme allows investors to contribute a minimum of ₹500 and a maximum of ₹1.5 lakh annually, providing tax benefits as well.
Accumulate Over ₹24 Lakh by Saving ₹250 Daily
Even modest daily savings can accumulate into substantial wealth over time. By investing ₹7,500 monthly (equivalent to saving ₹250 daily), you’ll contribute ₹90,000 annually to the PPF scheme.
With a tenure of 15 years, this translates to a total investment of ₹13,50,000. According to PPF calculations, at an interest rate of 7.1 percent, you’ll earn ₹10,90,926 in interest, resulting in a total return of ₹24,40,926 over 15 years.
Tax Benefits and Advantages of PPF
PPF is highly regarded for its tax-saving benefits, falling under the EEE category (Exempt, Exempt, Exempt).
This means that investments, interest/returns earned annually, and the maturity amount are all exempt from taxation.
Additionally, PPF account holders can avail themselves of loan facilities, with interest rates on PPF loans being only 1% higher than the prevailing PPF interest rates, making it a cost-effective borrowing option.
