Forget big banks, humble Post Office can make you crorepati! Here's how

Post Office Public Provident fund scheme: The humble post office near your home can make you a crorepati! Believe it or not, but by some smart and regular investment in one of the savings schemes of the post office, you can generate Rs 1 crore wealth and also save income tax on the interest.

The post office offers 15-year Public Provident Fund (PPF) Account which can be extended for further five years and so on. The current rate of interest offered on PPF investment is 8%. The interest rate is revised by the government quarterly. Since 2000, the interest rate on PPF has largely remained above 8 percent. Between 1st April 1986 to 14th January 2000, the PPF rate was a whopping 12%. 

At the current rate of 8% interest, you can get up to Rs 1.3 crore or more on an annual investment of Rs 1.5 lakh for 25 years. Your total investment during this period will be 1.5 lakh x 25 = 37.5 lakh. 

Here are some features of the Post office Public Provident Fund Scheme you need to know:

- Any individual can open the PPF account with Rs 100 but he/she needs to deposit minimum of INR 500/- in a financial year. The maximum investment can be made in the PPF account in a year is Rs 1,50,000. 

- One can open a joint PPF account.

- The Post Office PPF account can be opened by cash or cheque. In case of cheque, the date of realization of the cheque in the government's account shall be the date of opening of account, according to Indiapost.gov.in

- PPF account features nomination facility at the time of opening and also after the opening of account. The Post Office PPF account can be transferred from one post office to another.

- You can open another PPF account in the name of minors but subject to maximum investment limit by adding balance in all accounts.

- The Post Office PPF account's maturity period is 15 years. It can be extended within one year of maturity for further five years and so on. The maturity value can be retained without extension and without further deposits also.

- PPF account cannot be closed prematurely before 15 years. The deposits in the Post Office PPF account qualifies for deduction from income under Section 80C of the Income Tax Act. The interest on PPF deposit is also completely tax-free.

-  One can start partial withdrawal from PPF account from the 7th financial year from the year of opening account. Loan facility is also available from the 3rd financial year.

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Apart from PPF, the post office also offers several other savings schemes that you can use to grow your savings.