Post Office PPF Yojana: In today’s time when inflation is constantly increasing and there is an atmosphere of economic uncertainty, saving becomes even more important. Many people wonder how saving is possible in low income, but the reality is that if even a small amount is saved regularly, it can become a big asset over time. The Post Office Public Provident Fund Scheme is based on this principle.
This scheme is especially useful for those who are risk averse but want good returns on their money. Backed by a government guarantee, this scheme provides complete security and prepares the investor for future economic challenges.
Features and Benefits of Public Provident Fund
The Post Office PPF scheme is a long-term savings scheme that currently offers an interest rate of 7.1 per cent per annum. The biggest feature of this scheme is that there is no tax on the amount deposited, the interest received and the amount received on maturity. It provides tax exemption at all three levels which makes it better than other investment options.
This scheme offers the benefit of compound interest which means that the interest received on your principal also earns interest the next year. In this way your money grows rapidly over time. This is why its returns are quite attractive in the long term.
Understand the calculation through practical examples
Suppose a person deposits Rs 45,000 every year in this scheme and continues this sequence for fifteen years. His total deposit amount in this period will be Rs 6,75,000. But due to compound interest, after fifteen years he will get about Rs 5,45,000 as additional interest.
Thus, in total he will have more than twelve lakh twenty thousand rupees in his account. This calculation is based on the current interest rate and shows how with patience and regularity even a middle class person can create a good amount of wealth. The most important thing is that this entire amount will be tax free.
Simple account opening process
Investing in this scheme is very easy and does not require any complicated process. You can visit your nearest post office and fill a simple application form. All that is required is an Aadhaar card and a passport size photo. You can make your first contribution immediately after opening the account.
Modern technology has made this process even more convenient. You can deposit money into your account from the comfort of your home and track the progress of your savings through a mobile application. This facility helps in continuing savings in a busy lifestyle.
Future Security and Financial Planning
This plan is not just a means of saving money but is the basis of future financial security. It provides a strong financial base for children’s higher education, marriage or your old age needs. It is an effective way to avoid the impact of inflation as your money increases in real value over time.
The biggest strength of this scheme is that it is not affected by market fluctuations and comes with a government guarantee. This gives the investor peace of mind and they can continue their savings without any worries. It is also an excellent option to inculcate the habit of regular savings.
To achieve a sum of over Rs. Twelve lakhs by depositing Rs. Forty Five thousand every year over a period of fifteen years is indeed an outstanding achievement which reflects financial discipline and foresight.
Disclaimer: This article is written for general information purpose only. For accurate information on the latest interest rates, terms and conditions of the Post Office PPF scheme, please contact your nearest post office or visit the official website of the Post Office Department.
