Post Office scheme: If you know how to put away cash appropriately, then there are many such plans which can make you rich. One such plan is the Public Provident Fund (PPF) plan of the post office. This plan of Post Office is exceptionally useful in making large corpus in the long haul.
Most secure speculation
The specialty of this plan is that your interest in it is totally protected. It isn’t impacted by market variances. These interest rates are fixed by the public authority, which is looked into on a quarterly premise. The post office is presently getting 7.1 percent yearly premium on the PPF conspire.
Account can be opened in bank office
You can open Public Provident Fund (PPF) account at the post office or bank office. This record can be opened with just Rs 500. In this, up to Rs 1.50 lakh can be deposited every year. The maturity of this account is 15 years. Be that as it may, after maturity, there is a facility to broaden it further in the section of 5-5 years.
Will make crorepati by money management Rs 12,500 consistently
If you deposit Rs 12,500 in a PPF account consistently and keep up with it for a very long time, you will get an aggregate of Rs 40.68 lakh on maturity. In this, your complete venture will be Rs 22.50 lakh, while Rs 18.18 lakh will be your pay from interest.
This computation has been finished expecting the interest rate of 7.1% per annum for the following 15 years. The maturity sum might change when the interest rate changes. Know here that compounding in PPF occurs on a yearly premise.
There will be a benefit of crores like this
To turn into a tycoon from this plan, then, at that point, you need to increment it two times following 15 years for 5-5 years. That is, presently your venture residency has become 25 years. Consequently, following 25 years your all out corpus will be Rs 1.03 crore. Your absolute interest in this period will be Rs 37.50 lakh, while you will procure Rs 65.58 lakh as interest pay.
Remember that to expand the PPF account further, then the application must be given one year before the maturity. The record can’t be stretched out after maturity.
Benefit on tax
The greatest benefit of the PPF scheme is that it gives tax breaks under area 80C of the Income Tax Act. In this, allowance can be taken for venture up to Rs 1.5 lakh in the plan. The premium procured and matrity sum in PPF is likewise tax exempt. Along these lines, interest in PPF goes under the ‘EEE’ classification.
In particular, the government supports little investment funds plans. Thusly, the supporters get total security on interest in this. In this, there is a sovereign assurance on the premium acquired.
