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Small Saving Benefits: Rs 25 Lakh Fund Can Be Created Through Rs 150 Daily Investment

The PPF Scheme Of The Post Office Can Be Beneficial For All The Working People To Save Tax.

News Nation Bureau | Edited By : Aniruddha Dhar | Updated on: 21 Feb 2020, 05:46:06 PM
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Under this, after depositing Rs 150 daily, you will be able to get more than Rs 25 lakh after 20 years. (Photo Credit: Representative image)

New Delhi:

The Public Provident Fund (PPF) comes across as one of the best options if you are looking for a safe investment option. It is currently offering 8% interest, which is compounded annually, in post office. The PPF scheme of the post office can be beneficial for all the working people to save tax.

You can open an account for Rs 100 at any post office branch across the country. Under this, after depositing Rs 150 daily, you will be able to get more than Rs 25 lakh after 20 years.

This scheme is for 15 years. Later, it can also be extended for 5 years. If you invest for 15 years, the total investment will be Rs 8.10 lakh. After 15 years, if you get annual compound interest at the rate of 7.6 per cent on an average, your total fund will be Rs 15.30 lakh. That is, you will get an additional interest of Rs 7.19 lakh on the total investment.

Many people do not understand the benefit of small savings. But if you stop some unnecessary expenses, then you can take big benefit by saving money of Rs 100 to 150 a day by investing money in small government schemes. Private accountant, businessman or farmer can open any account. There is also no age bond.

Individuals of any class and community can invest in it. You can also plan on your children.

1. What is a PPF account?

PPF stands for Public Provident Fund which is a long-term investment scheme declared by the government of India. It is a safe deposit scheme that offers tax exemptions and attractive interest rates. Apart from the public and private sector banks, a PPF account can also be opened through post offices.

2. Eligibility criteria

Any individual who either works for a private company or is a pensioner or self-employed, or belongs to any other category, can open a PPF account in a post office.

Only one PPF account can be opened per individual. In case you open more than one, only the principal amount will be refunded without any interest from the second account, and it will be closed.

Either the father or the mother, (not both), can open a PPF account in the name of their child. In case of the death of the father or the mother, the minor cannot continue with the account, it will be closed and the money will be refunded.

3. Documents required to open a PPF account in a post office

ID proof: Voter’s ID, Passport, Driving license, Aadhaar Card etc.

Address proof: Voter’s ID, Passport, Driving license, Aadhaar Card etc. PAN card

The initial deposit required to open a post office PPF account is Rs. 500 and the maximum amount allowed initially is Rs. 70,000. However, the maximum deposit allowed within a year is Rs. 1.5 lakh.

(Source: ClearTax)

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First Published : 20 Feb 2020, 10:11:35 PM