PPF Strategy: Turn Rs 12,500 per Month Into Rs 40 Lakh Corpus with Post Office Plan

Post office: Financial experts say that just as it's important to earn money, it's equally important to invest it wisely. For such people, the central government's Post Office has introduced some great schemes. 

Image Credit : Getty

A good investment with security

For those seeking good returns with security, the Post Office's PPF (Public Provident Fund) scheme is a great choice. Since it's a government-backed savings plan, there's no risk of losing money. It's stable compared to schemes with market ups and downs.

Image Credit : Getty

How to earn Rs. 40 lakhs?

If you invest Rs. 12,500 monthly or Rs. 1.5 lakh annually, you'll accumulate about Rs. 40.68 lakh in 15 years. Your total investment will be Rs. 22.5 lakh, and you'll get Rs. 18 lakh in interest. This entire amount is tax-free.

Image Credit : India post

Three types of tax benefits

The specialty of the PPF scheme is that the deposited amount, the interest earned, and the final maturity amount are all tax-free. This “triple tax benefit” is rare. It's a great scheme not just for high-income earners but also for middle-class families.

Image Credit : India post

Can be started with just Rs. 500

You don't need a lot of money to open an account in this scheme. You can start with just Rs. 500. The PPF tenure is 15 years, which can be extended in blocks of 5 years. This helps in building a saving habit.

Image Credit : India post

Option to withdraw money when needed

While investing in this scheme, you can also take a loan against your balance if needed. After the initial 5 years, you can make partial withdrawals. This is a useful benefit for emergencies, along with long-term savings.