Post Office Scheme : In today’s era, most of the people are investing in mutual funds or shares. Even today there are people in India who deposit money in the post office. The reason for this is that there is no risk in the post office scheme. Apart from this, the returns in post office investment scheme are also quite good. This is the reason why despite investment options like mutual funds and shares, common people trust post office schemes the most. Today we will tell you how you can become a millionaire by investing in Post Office PPF.
public provident fund scheme
Currently, interest is being given on Post Office Public Provident Fund Scheme i.e. PPF at the rate of 7.10 percent. You can start investing in PPF with a minimum of Rs 500 in a financial year. In this you can deposit any maximum amount. But you will get exemption only up to a maximum of Rs 1.5 lakh under Section 80C of Income Tax. Interest income on maturity will also be completely tax free. Its maturity period is 15 years and thereafter it can be extended in blocks of 5 years. Under this scheme a person can open only one account.
Interest rates are updated every three months
The Finance Ministry revises interest rates every three months. Interest income is transferred to your account at the end of each financial year. According to the current rate, if you invest Rs 100 daily, then when it matures after 15 years, you will get a lump sum of Rs 9,76,370 which will be completely tax free. Your total deposit during 15 years will be Rs 5,40,000. In this way you will easily become a millionaire.
Get loan
You also get the benefit of loan on PPF. You get the loan facility from the next financial year in which you start investing. This facility lasts for a period of five years. You can get a loan up to 25 percent of the amount deposited in your account. Loan can be taken only once in a financial year. No second loan will be available until the first loan is repaid. If the loan is repaid within three years, the interest rate will be only 1 percent per annum.
Premature withdrawal rules
Talking about withdrawal, withdrawal can be made once in a financial year after a lock-in period of five years. This can be up to 50 percent of the amount deposited in your account. Talking about premature closure, it is allowed in case of illness of the account holder or for higher education of himself or his children. Some charges are deducted for this.
