Post Office Small Saving Scheme: If you are one of the investors who is looking to investing money without any risk, here’s one wonderful saving plan for you. For such investors, small savings of the post office is a better option. Being a government scheme, it guarantees return on your every penny. These savings schemes in the post office offer maturity time from 1 year to 15 years. If you have a long-term investment plan, then you should invest in Public Provident Fund (PPF).Also Read – Public Provident Fund: Invest Just Rs 10,000 Every Month and Earn up to Rs 1 Crore After Maturity
Public Provident Fund: Check main features Also Read – Provident Fund: Why Withdrawing PF Money Soon After Changing Job Not a Good Idea | Explained
In this post office saving scheme, you get 7.1 percent interest rate per annum compounding. The maturity of this scheme is 15 years, but it can be extended for another 5 years even after maturity. If you do not need the fund at the maturity of 15 years, then you can carry it forward. This will give you more benefit of compounding. Also Read – 7th Pay Commission: Madhya Pradesh Announces Big Diwali Bonanza, Increases Dearness Allowance by 8% For State Employees
In this saving scheme, the maximum amount that can be deposited is Rs 1.50 lakh annually. Instead of depositing Rs 1.50 lakh in a year, you can also take the option of depositing Rs 12500 every month.
Moreover, you can take advantage of tax exemption from PPF account under 80C of the Income Tax Act. The interest and maturity income received in this is also tax free.
Public Provident Fund: Calculate interest
You will get Rs 18 lakh interest on depositing Rs 22.5 lakh in the saving scheme.
Maturity: 15 years
Monthly investment: Rs 12,500
1 year Investment: Rs 1.50 lakh
Total investment in 15 years: Rs 22.50 lakh
Annual Interest rate: 7.1 percent
Maturity amount: Rs 40.70 lakh
Interest benefit: Rs 18.20 lakh
If you deposit Rs 12,500 for 25 years
Monthly Investment: Rs 12,500
Total Investment in a year: Rs 1.50 lakh
Total Investment in 25 years: Rs 37.50 lakh
Annual Interest Rate: 7.1 percent
Maturity Amount: Rs 1.03 crore
Interest Benefit: Rs 62.50 lakh
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