Post Office PPF Scheme: We all want our money to be safe and grow over time. In such a situation, the Public Provident Fund (PPF) scheme of the post office emerges as a reliable option. It not only gives good returns but is also completely tax free. For middle class families, this is such a means, which gradually turns into a big amount. Imagine if you deposit ₹ 50,000 in PPF account every year, then after 15 years you can get around ₹ 13,56,070.
Post Office PPF Scheme: Current interest rate of PPF
The Public Provident Fund scheme currently gives 7.1% annual interest, which is compounded annually. The lock-in period is 15 years, but it can be extended in blocks of 5 years as per requirement. The biggest feature is that investment, interest and maturity are all completely tax free.
Post Office PPF Scheme: ₹50,000 annual investment calculation
If you deposit ₹50,000 every year and run it for 15 years, your total investment amount will be ₹7,50,000. During this time you will get interest of about ₹6,06,070, and in the end you will get a total of ₹13,56,070. That is, the amount deposited with your hard work will almost double and return to your account.
Post Office PPF Scheme: A real life example
Sunil is a small businessman. He opened a PPF account in the post office fifteen years ago and started depositing ₹50,000 every year. It was not always easy, but he treated it like a mandatory saving. Recently when his account matured, he received an amount of more than 13.5 lakhs. With this money, he renovated his shop and helped his son study. This is the magic of PPF, which you do not even realize, but your regular savings gradually turn into a big amount.
Post Office PPF Scheme: Why is PPF popular
The biggest feature of PPF is the triple tax benefit: investment under section 80C, tax free interest and tax free maturity. Apart from this, it is also flexible. You can invest a minimum of ₹ 500 and a maximum of ₹ 1.5 lakh annually. This is why it is a suitable investment option for both salaried and self-employed.
If you deposit ₹ 50,000 every year in a Post Office PPF account, then after 15 years you will get around ₹ 13,56,070. In this, your own savings are ₹ 7.5 lakh and guaranteed interest is about ₹ 6.06 lakh. PPF is still one of the best options for safe, long-term and tax-free investment.
Disclaimer: This article has been prepared for educational and general information purposes only. PPF interest rates are revised every quarter by the government. Please get the latest details from your nearest post office or authorized bank before investing.
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