Post Office Saving Schemes: Know how you can get Rs 40 lakh in this great scheme of post office

Post Office Saving Schemes: Everyone wants to set aside a portion of their income and put it in a secure location with high returns. In this instance, all of the post office‘s programs are very well-liked and provide substantial profits. The Public Provident Fund is one such program that is particularly well-liked by investors seeking low-risk, tax-free investment returns. Even if it offers interest rates more than 7%, routine investments also generate a sizable sum of money.

15.1% interest rate with a 15-year lock-in

The government offers investors 7.1% yearly tax-free interest via the Public Provident Fund. For those in the higher tax bracket, this government program turns out to be a lucrative one in such a scenario. PPF investments, which are tax deductible under 80C, promote disciplined saving. It asserts EEE (Exempt-Exempt-Exempt), which essentially indicates that your contribution to the plan is tax-free, as is the interest you earn on your investment and the amount you receive at maturity. In this arrangement, the lock-in duration is 15 years.

You may begin investing with as little as Rs 500

One may begin investing as little as Rs 500 in the Post Office’s PPF plan, which is guaranteed to be secure by the Indian government itself. The PPF Scheme allows for a maximum lump sum investment of Rs 1 lakh 50,000 every fiscal year. The unique feature of this government program is that, should you choose to continue investing beyond the 15-year lock-in term, you may extend it every five years.

Here’s how to raise forty lakh rupees

Let’s now explain how investors may use this strategy to raise over Rs 40 lakh over its 15-year maturity. Let’s say you invest no more than Rs 1.5 lakh in it each fiscal year. In light of this, you would need to set aside Rs 12,500 every month from your salary. At a 7.1 percent interest rate, your total deposit would be Rs 22,50,000 if you make consistent annual payments for 15 years. You will also get a guaranteed return of Rs 18,18,209 for this. This means that at this maturity time, your whole investment will be Rs 4,068,209. Depending on your convenience, you may raise or lower the investment amount.

Early loan withdrawal capability

Any bank or post office may establish an account under the PPF Scheme. Additionally, it offers investment loan facilities, and one may request a loan after the conclusion of the fiscal year in which the original investment was made. In addition, after creating a PPF account for five years, one has the option to withdraw money from it. For instance, withdrawals may be made after 2026–2027 if the account was started in 2020–21.