The Post Office is one of the most well-liked options for middle-class salaried people in India seeking safe investments with good returns. Although there are numerous opportunities for profit on the stock market as well, the Post Office Public Provident Fund (Post Office PPF) Scheme is a superior option if you want to put your money somewhere where it will be safe and yield good returns. Even if you only put a small amount of money into this scheme, you can still make a significant profit.
This plan provides both safety and savings. The post office PPF account is one of the best options for investors to think about because of its high rate of return. Investors are guaranteed fixed returns at the rate at which their money was initially invested under the scheme. This means that even if interest rates are later cut, investors do not need to be concerned about them altering. (Also Read: Bank of Baroda lowers rate on house loan by 25 bps to 8.25%; check how much it impacts borrowers)
The only individual who can open an account for interested investors is the one who registers for the account. After then, the scheme prohibits the opening of any new joint accounts. On behalf of minors, parents or legal guardians may open an account.
NRIs are not permitted to use the program according to Post Office regulations. An Indian who becomes an NRI before reaching adulthood is eligible for the advantages. You would receive a guarantee in the amount of Rs. 1 crore in this case. The program's return is actually Rs 1 crore. In the previous example, if you deposited 417 rupees each day into a bank account for 25 years, your total return may reach one crore rupees.
Although this program has a 15-year maturation time, you have the option to extend it twice for 5-year periods. Additionally, you receive tax advantages. Here, a 7.1 percent yearly interest rate is being given. In this case, the interest compounds yearly.
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In 15 years, or till maturity, if you invest Rs 12,500 per month or Rs 417 per day, your entire investment will be Rs 22.50 lakhs. You will receive the benefit of compounding with an annual interest rate of 7.1 percent, also in accordance with the regulations. You will then receive Rs. 18.18 lakh as interest. You have a total of Rs 40.68 lakh when you include both.
You will receive Rs. 1.03 crores if you decide to continue your investment for a further two times for 5-5 years. Your investment will total Rs. 37.50 lakh in this scenario. The interest you pay rises to Rs 65.58 lakh. The entire amount of money you will receive is Rs. 1.03 crores.
