Stories
Build A Corpus Of Rs 1 Crore With This Popular Post Office Savings Scheme
- •Investors can build a massive fund of Rs 1 crore by investing regularly in the Public Provident Fund PPF scheme.
- •The post office small savings scheme offers zero-risk investments backed by government guarantees.
- •PPF offers tax exemptions of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act under the old tax regime.
- •The scheme currently offers an annual interest rate of 7.1 percent with a maturity period of 15 years.
- •By extending the tenure in blocks of 5 years and investing the maximum limit annually, the total fund can cross Rs 1 crore.
Key Questions Answered
The post office Public Provident Fund (PPF) scheme currently offers an annual interest rate of 7.1 percent. The standard maturity period of the PPF scheme is 15 years, which can later be extended in blocks of 5 years.
The Public Provident Fund features an Exempt-Exempt-Exempt (EEE) status, meaning the invested money, earned interest, and the final maturity amount are all entirely tax-free subject to specific conditions. Additionally, investors can claim tax exemptions of up to Rs 1.5 lakh per year under Section 80C of the Income Tax Act if they choose the old tax regime.
By depositing the maximum allowable amount of Rs 1.5 lakh annually for 15 years, your investment yields around Rs 40.68 lakh at maturity. Extending this tenure through two subsequent 5-year blocks makes the total investment period 25 years, growing the fund to approximately Rs 1,03,08,015 based on a stable 7.1 percent interest rate.
