Post Office Scheme: As everyone wants to invest in a safe investment scheme while also earning higher returns, this post office scheme may be beneficial to you. This scheme is beneficial for the people who seek assured profits from a government scheme while keeping their money safe.

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Among other post office schemes, the Public Provident Fund (PPF) is an excellent option for such investors. This scheme is available in all the banks. Under this scheme, you must invest at least Rs 500 per year and will receive 7.1 per cent interest. The maximum yearly limit for this scheme is Rs 1.5 lakh. You can also get tax benefits from this PF scheme.

 

How to accumulate over Rs 24 lakh under PPF

To get Rs 24 lakh, you just need to save Rs 250 every day. This means, you will have to invest Rs 7,500 every month for 15 years. 

Suppose, you start investing at 25 years of age. As this scheme is a 15-year scheme, you will invest a total of Rs 13,50,000 till 40 years of age. If you get 7.1 per cent returns on this scheme, you will get Rs 10,90,926 as interest, and a total maturity amount will be Rs 24,40,926.

How is it beneficial for income tax?

This is an EEE (Exempt Exempt Exempt) category scheme. People who invest under this scheme, don't need to pay tax on this investment amount. This is completely tax-free. This way, you save tax on investments, returns, and maturity amounts as well.

How to take a loan through PPF?

PPF account holders also get the loan facility. You get the loan based on the amount deposited in your PPF account. This loan is cheaper than an unsecured loan. As per the rules, the interest rate on a PPF loan is only 1 per cent more than the interest rate on PPF account. That means, if you are taking 7.1 per cent interest on PPF account, then you will have to pay 8.1 per cent interest on taking the loan.

Post Office Monthly Income Scheme (MIS) 

Another good post office scheme is Post Office MIS. In this government scheme, single and joint account facility is available. A maximum of Rs 9 lakh can be deposited in a single account and a maximum of Rs 15 lakh can be deposited in a joint account. Your deposited amount remains completely safe and you earn interest every month

Currently, the Post Office provides 7.4 per cent returns on this scheme. Through a joint account, you can earn Rs 9,250 every month. You can deposit money in this scheme for a maximum of five years. Read more here