Currently, investing in the Post Office PPF scheme is proving to be beneficial for customers due to significantly higher interest rates. Moreover, apart from interest, investing in this scheme offers various other benefits from the post office. You can initiate your investment in this scheme with as little as ₹100 per month.
Whether you are employed or running your own business, the Post Office’s PPF scheme proves to be advantageous for everyone. By investing in this scheme for an extended period, you can accumulate a substantial amount for yourself and your children in the future.
Let’s delve into this article to provide you with detailed information about the Post Office’s PPF scheme, including what the PPF Scheme entails, how investments are made, and the interest rates provided by the post office upon investment maturity.
What is the PPF Scheme?
The scheme operated by the Post Office, known as the Public Provident Fund (PPF) Scheme, offers considerable benefits to investors compared to ordinary savings schemes. Initiated in 1986, the PPF Scheme is a tax-exempt investment plan where no income tax is levied on both the investment and the interest earned.
Benefits of Investing in the PPF Scheme
There are numerous advantages to investing in the PPF Scheme, which investors receive after investing in this scheme. The primary benefit is the tax exemption on both the investment and the interest earned.
Additionally, investors are provided with the opportunity to invest for an extended period and accumulate a significant amount for their future. Moreover, after seven years of investment in this scheme, investors can avail themselves of the facility of obtaining a loan from the post office.
How to Invest in the PPF Scheme
If you wish to invest your money in the Post Office’s PPF Scheme, you need to visit your nearest post office and open an account for investment. Some essential documents are required for investment, including your Aadhar card and linked mobile number, proof of permanent residence, and recent passport-sized photographs.
You also need to fill out a form at the post office and submit all the required documents along with it.
Interest Rate in the PPF Scheme
Investing in the Post Office’s PPF Scheme offers investors the benefit of attractive interest rates provided by the post office. While interest rates may vary in post office savings schemes over time, currently, investors receive a return of 7.1% interest on their investments.
Estimated Returns on Monthly Investment of ₹1000
In the PPF Scheme operated by the post office, investors are required to invest their money for a period of 15 years, which can be further extended for five years. If you invest ₹1000 per month, your annual investment amounts to ₹12,000.
At the end of the 15-year investment period, your total investment in the scheme amounts to ₹1,80,000. The post office provides a maturity amount of ₹3,25,457 after the completion of the 15-year tenure, which includes both the invested amount and the interest earned.
