If you are planning to invest in something then this article is for you. Investors are feeling anxious because of ongoing losses in the stock market, which has led to a renewed interest in government investment schemes. Post office savings plans are not only completely secure and unaffected by market downturns, but they also provide better interest rates. There are also long-term investment options available in small savings schemes that can help build a substantial amount over time.

 

Among these options, the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are particularly geared towards encouraging long-term investments. Both schemes allow for investments over a period of 15 years. If you’re considering a 15-year investment for the long haul, it’s crucial to understand which option will yield greater benefits.

 

Both PPF and SSY are government-backed schemes, and you can open an account for either at any post office across the country.

 

PPF and SSY

 

These schemes are tailored for long-term investments, helping you achieve various financial goals.

 

You can deposit up to Rs 1.50 lakh in each scheme per financial year, and this can be done monthly. If you invest Rs 12,500 in both schemes each month, you’ll hit the Rs 1.50 lakh limit within a year.

 

With PPF, you need to contribute for 15 years, and the maturity period is also 15 years. In the case of the Sukanya Samriddhi Scheme, you invest for 15 years, but the account matures after 21 years.

 

Both of these plans are tax-free. The Sukanya Samriddhi Yojana and the Public Provident Fund (PPF) both offer tax exemptions at three levels, known as EEE. First, you can claim a tax deduction on your annual investment of up to Rs 1.50 lakh under Section 80C of the Income Tax Act. Second, the returns you earn from these investments are tax-free. Lastly, the amount you receive upon maturity is also exempt from tax.

 

PPF Calculator

 

– Maximum monthly deposit: Rs 12,500

– Maximum annual deposit: Rs 1,50,000

– Interest rate: 7.1% compounded annually

– Maturity amount after 15 years: Rs 40,68,209

– Total investment: Rs 22,50,000

– Interest earned: Rs 18,18,209

 

SSY Calculator

 

– Interest rate for SSY: 8.2% per annum

– Maximum deposit limit per financial year: Rs 1.50 lakh (you can also deposit up to Rs 12,500 monthly)

– Total investment over 15 years: Rs 22,50,000

– Total amount at maturity after 21 years: Rs 69,80,100

– Interest earned: Rs 47,30,100.

 

Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.