The Post office is one of the most trusted financial instruments in the country. It offers many schemes that promise guaranteed returns. One scheme that will allow you to become a millionaire is the Post Office's Public Provident Fund (PPF).
An individual will have to just invest Rs 417 in the account on a daily basis with an annual interest of 7.1 per cent. The maturity period for this scheme is 15 years but you can extend it twice for 5-5 years. This scheme also offers major tax benefits.
Now, if you invest in this scheme till maturity and deposit a maximum of Rs 1.5 lakh annually i.e. Rs 12,500 a month or Rs 417 a day, then your total investment will be Rs 22.50 lakh. That is, you will get the benefit of compounding interest along with the annual interest of 7.1 per cent at the time of maturity. At the time of maturity, you will get Rs 18.18 lakh as interest. That is, you will get Rs 40.68 lakh.
Other than this, if you wish to become a millionaire then you will have to increase this scheme twice after 15 years for 5-5 years. By investing Rs 1.5 lakh annually, your total investment will be Rs 37.50 lakh. After maturity, you will get Rs 65.58 lakh with a 7.1 per cent interest rate. That is, after 25 years, your total fund will be Rs 1.03 crore.
Who can open a PPF account?
Any resident of India - Salaried, Self Employed, Pensioners etc. can open an account in the PPF of the Post Office. This scheme offers one account for each person. There is no facility for a joint account.
Documents required to open the account:
- Identity Proof – Voter ID, Passport, Driving License, Aadhar Card
- Address Proof- Voter ID, Passport, Driving License, Aadhar Card
- Pan Card
- Passport size photograph
- Enrollment Form E
