This post office scheme can help you build Rs 2.26 crore tax-free retirement corpus; you just need to follow this trick
Post Office scheme: PPF scheme matures in 15 years but you can extend it in a block of five year. So, you will have to invest Rs 1.5 lakh annually for 25 years.
There are several investment schemes offered by the Post Office. These include Post Office Savings Account (SB), National Savings Recurring Deposit Account (RD), National Savings Time Deposit Account (TD), and National Savings Monthly Income Account(MIS) among many others.
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Post Office scheme: PPF
If you are looking to become a crorepati, you can try investing under this Post Office scheme.
Public Provident Fund (PPF)
Post Office offers one investment scheme called Public Provident Fund (PPF) that can make you crorepati.
How to get tax-free amount on maturity
If you want your retirement corpus tax-free under PPF, we are going to share one trick to make this possible.
PPF: How to become a crorepati
In PPF, a person can invest a maximum of Rs 1.5 lakh in a year. The minimum deposit under this scheme is Rs 500.
PPF: Interest rate
The current interest rate is 7.1 per cent under PPF.
Know calculations to make Rs 2.26 crore tax-free corpus
PPF scheme matures in 15 years but you can extend it in a block of five year. So, you will have to invest Rs 1.5 lakh annually for 25 years.
Calculations
If you do this, then in 25 years you will invest a total of Rs 37,50,000. As per the 7.1 per cent interest rate, you will get Rs 65,58,015 as interest. In this way, after 25 years including your investment and the interest amount received on it, you will get a total of Rs 1,03,08,015.
Invest for 30-35 years
On the other hand, if you continue to contribute to this scheme for 30 years, you can get Rs 1,54,50,911 as the maturity amount and if you continue the same investment for 35 years, you will get Rs 2,26,97,857 as the maturity amount.
Tax-free amount on maturity
One advantage of the PPF scheme is that the money deposited in it, the interest received and the amount received on maturity is completely tax-free.