The maturity period in the Post Office Public Provident Fund is 15 years.
New Delhi: Post Office offers a slew of safe schemes that offer impressive returns to investors. Investors put their money in the various schemes offered by the Post Office to secure their future, especially their retirement.
In one such scheme called Post Office Public Provident Fund (Post Office PPF), investors can save Rs 150 daily to get Rs 20 lakh at the time of maturity without the risk of losing money due to stock market movements.
The maturity period in the Post Office Public Provident Fund is 15 years. However, the limit can be extended twice for each term of five years if you want to receive Rs 20 lakh at the time of maturity.
You will also avail of tax benefits in the Post Office Public Provident Fund. Currently, Post Office is offering a 7.1 per cent interest annually in the scheme and with your investment increasing each year, your money will also rise.
How to get Rs 20 lakh?
Suppose, you are 25 years old and earn about Rs 35,000 per month. You can save about Rs 150 per day to invest about Rs 4500 per month in the Post Office Public Provident Fund. This means that you will invest Rs 54,000 in a year.
In 20 years, your investment will be Rs 10.80 lakh. Including the compounded interest, you will get about Rs 20 lakh at the time of maturity. Moreover, you can also avail yourself of tax benefits under section 80C of the Income Tax Act.
You can get a rebate of up to Rs 2.5 lakh in the scheme. Also, the interest earned and maturity amount in PPF is also tax-free, as an investment in PPF comes under the ‘EEE’ category.
