Post Office Scheme: Invest Rs 12,500 Per Month to Get Rs 40 Lakh Maturity

Post Office Scheme: Invest Rs 12,500 monthly in the post office and earn over Rs 40 Lakhs. How can you earn such a large sum? What's the scheme all about? 

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A safe and profitable scheme

Many people want to save a portion of their income. They also want these savings to be a secure investment with good returns. Post office schemes are the best choice for such people. You can get good returns along with a government guarantee.

Among them, the Public Provident Fund (PPF) scheme is the most popular. In this, you can get guaranteed tax-free income on your investment. You can get more than 7% interest through investment in PPF. Also, by investing regularly, you can earn a huge amount of income.

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How much is the interest? Policy term?

Those who invest under the Public Provident Fund (PPF) can get 7.1% interest from the central government. That too without taxes. This scheme is especially beneficial for people in the higher tax bracket. Investment in PPF gets tax exemption under section 80C. This scheme encourages disciplined savings.

The PPF scheme works on the EEE (Exempt-Exempt-Exempt) method. This means that there is no need to pay tax on the investment in this. Tax is also not levied on the interest earned on the investment, the maturity period of this scheme is 15 years. However, even after those 15 years, the investment can be extended every 5 years.

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Scheme starts with just Rs 500

The Government of India guarantees investment in the Post Office PPF scheme. This scheme with Central Government's guarantee can be started with an investment of just Rs.500. A maximum of Rs 1,50,000 can be invested in this scheme annually.

The specialty of this government scheme is that even after the 15-year lock-in period is over, you can extend this investment for another 5 years, so that you can continue saving safely even during the extended period.

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To get Rs.40 lakhs?

You can get returns of more than Rs 40 lakhs with a maturity of 15 years through the PPF scheme. How? If you invest a maximum of Rs 1.5 lakh every year for 15 years, the total deposit will be Rs 22,50,000.

Adding 7.1% annual interest to this, a return of Rs 18,18,209 is available. You can get Rs 40,68,209 till the maturity time. Depending on your personal financial situation, you can increase or decrease this investment amount.

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Loan along with advance withdrawal

An account under the PPF scheme can be opened at any post office or government bank. This account also offers loan facility on investment. You can apply for a loan as soon as the financial year in which the initial investment is made ends.

Similarly, the PPF account offers the facility of partial withdrawal after five years. For example, if you opened an account in 2020-21, you can withdraw money from the account after 2026-27.