Stories
Awesome Post Office Scheme: Accumulate Rs 1 Crore Without Risk
- •The Post Office Public Provident Fund or PPF scheme offers complete safety with a government guarantee and zero risk.
- •Investors can claim tax exemptions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act.
- •The scheme currently offers an attractive annual interest rate of 7.1 percent.
- •You can start investing with a minimum of Rs 500, while the maximum investment allowed in a financial year is Rs 1.50 lakh.
- •By extending the 15-year tenure with two block extensions, your total fund can grow to over Rs 1 crore in 25 years.
Key Questions Answered
The Post Office PPF scheme currently offers an attractive annual interest rate of 7.1% with a standard tenure of 15 years. Investors can start with a minimum of Rs 500 and invest up to a maximum of Rs 1.50 lakh in a financial year, and the tenure can also be extended in blocks of five years.
PPF investments offer tax deductions under Section 80C of the Income Tax Act for up to Rs 1.5 lakh under the old tax system. Furthermore, the scheme follows the EEE (Exempt-Exempt-Exempt) status, meaning your contributions, accumulated interest, and the final maturity amount are all entirely tax-free.
By investing the maximum amount of Rs 1.5 lakh every year for 15 years and taking two five-year extensions (totaling 25 years), your fund can grow to Rs 1,03,08,015. Out of this total accumulated corpus, approximately Rs 65.58 lakh will be earned purely from interest.
