Post Office PPF: An amazing post office plan that allows you to deposit Rs 5,000 per month and earn over Rs 26 lakh

Post Office PPF: An amazing post office plan that allows you to deposit Rs 5,000 per month and earn over Rs 26 lakh

Post Office PPF: An amazing post office plan that allows you to deposit Rs 5,000 per month and earn over Rs 26 lakh

The advantages of investing in PPF are explained by banks and post offices directly. A tax-free investment with good interest rates and full ownership of the money earned at maturity. From the perspective of investments, it is an excellent instrument. Fifteen years is the maturity phase.

Are you seeking for a means to get a solid income from interest or would want to start investing? Or desire an investment where there is no danger. The Public Provident Fund, or PPF plan, is the greatest option in this circumstance. Investing in it is open to all Indian citizens. The most important point is that its advantages are still the most sought after. The advantages of investing in PPF are explained by banks and post offices directly. A tax-free investment with good interest rates and full ownership of the money earned at maturity. From the perspective of investments, it is an excellent instrument. Fifteen years is the maturity phase. However, the investment may still be renewed after 15 years. If you give it more time, your profits will soar and you'll be left in the dust when your Rs 5000 original investment balloons to almost Rs 26 lakh.

When you reach adulthood, you have three choices. It is critical to comprehend these three choices. After maturity, take out your money first. Secondly, interest will still accrue even if you choose not to withdraw. Third, a five-year extension may be granted with fresh funding. Let's examine the necessary steps and methods.

1. Upon maturity, withdraw the whole amount.

When your PPF account matures, you may take both the money you put and the interest. The whole amount will be transferred to your account in the event that the account is closed. Upon maturity, the money and interest will be fully tax-free. In addition, investments up to Rs 1.5 lakh are free from income tax annually. Throughout the duration of the tenure, you won't be required to pay taxes on the money you have placed.

2. A five-year increase in PPF investment

After maturity, increasing the investment is the second choice. The account extension option under the program is available for a period of five (5) years. However, you will need to notify the bank or post office a year in advance of the PPF account's maturity if you would want an extension for the next five years. The benefit is that you may take out money whenever you choose and the premature withdrawal restriction does not apply during the extended period.

3. A scheme that, even after maturity, doesn't increase investment

The third choice in a PPF account will still function at maturity even if you do not choose any of the first two options. No more funding will be required for this. Automatically, maturity will be extended by five years. The largest benefit, however, is that interest will be paid to you on the cash you put over this whole time. Following that, when the full five years have passed, it may be renewed in the same way.

Where may a PPF account be opened?

Any public or private bank may establish a PPF account. In addition, you may establish an account at any branch of your city's post office. Opening an account for a minor is an additional option. On the other hand, the minor's parents continue to hold for another eighteen years. The Finance Ministry states that a Hindu Undivided Family (HUF) is not permitted to register a PPF account.

How is Rs 5000 going to be worth Rs 26.63 lakh?

Currently, the Public Provident Fund is giving out 7.1% interest. Every year, interest is computed. However, decisions are made every three months. Its interest rates haven't changed in a very long time. Let's suppose that investing for 15 or 20 years at the same interest rate will result in the creation of a sizable corpus at various quantities. The computations are shown below.