Post Office Latest Update: For secure investment, the Post Office PPF scheme offers a golden opportunity to become a crorepati (millionaire). Backed by a government guarantee, your money remains extremely safe in this scheme.

Post Office Scheme: Post Office savings schemes can be highly beneficial for secure investments and excellent returns. One of the key schemes is the Public Provident Fund (PPF), which offers investors a golden chance to become a crorepati. A major highlight of this scheme is that the government itself guarantees the safety of the investment.

What are the three major benefits of this scheme?

The biggest advantage is the tax deduction benefit available under Section 80 of the Income Tax Act on annual investments of up to ₹1.5 lakh. Secondly, the annual compound interest earned on this scheme is completely tax-free. Thirdly, no tax is levied on the total maturity amount received at the end of the tenure.

What is the interest rate offered on the scheme?

Currently, the scheme offers an interest rate of 7.1 percent. However, interest is calculated based on the minimum balance maintained between the 5th and the last day of the month. Therefore, if you deposit money between the 1st and the 5th of the month, you start earning interest from that very month.

How can you become a crorepati in 25 years?

While the scheme has a standard tenure of 15 years, it can be extended in blocks of 5 years. Additionally, you can easily invest up to a maximum of ₹1.5 lakh annually without any hassle. By investing consistently for 15 years, you can build a substantial corpus comprising your deposits and the accumulated interest. Extending the tenure by another 5 years brings the total fund to ₹66.58 lakh, with the interest component alone accounting for ₹36.58 lakh. Meanwhile, extending the tenure twice results in a total investment of ₹37.50 lakh, while the accrued interest reaches ₹65.58 lakh. In other words, by the end of 15 years, you will have easily accumulated a substantial corpus exceeding ₹1.03 crore.