If you invest 100 rupees in this scheme on a daily basis, then after 15 years you will get 100000 rupees which can be useful in your future.
Post Office PPF scheme: Today the Reserve Bank again did not change the repo rate. It has been retained at 4 per cent. Due to the low interest rate, you are definitely getting a cheap loan from the bank, but the interest rate on your deposits has also come down. In this article, we are going to tell about such a scheme of the post office, under which a great interest rate of 7.1 percent is available. If you invest 100 rupees in this scheme on a daily basis, then after 15 years you will get 100000 rupees which can be useful in your future.
The Post Office is currently offering an interest rate of 7.10 percent on Public Provident Fund Account. Under this, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be deposited in a financial year. Under this scheme, a person can open only one account. The most important thing is that the Public Provident Fund scheme has been made tax friendly. If you invest in it, then you will get the benefit of deduction under section 80C. Interest income on maturity will also be completely tax free. In such a situation, investors see a more attractive investment option. Its maturity period is 15 years and after that it can be extended in blocks of 5 years. There are certain terms and conditions regarding pre-maturity withdrawal.
The interest rate is updated every three months
Interest rate revision is done every three months by the finance ministry. The interest rate for the June quarter is 7.1 percent. On June 30, the Finance Ministry will take a decision on the interest rate. The interest income is transferred to your account at the end of every financial year. According to the current rate, if you invest Rs 100 daily for your future, then after 15 years when it matures, you will get a lump sum of Rs 989931 which will be completely tax free. Your total deposit amount during 15 years will be Rs 547500.
500 is required to be deposited every financial year
To keep the PPF account active, it is necessary to deposit Rs 500 in every financial year. If you do not do this then the account will become inactive. Loan facility is not available for in-active account. Once the account is activated, there is an annual penalty of Rs 50 for reactivating it.
Loan facility also available
Talking about loan facility, loan facility is available from the next financial year of the financial year in which you have opened this account. This facility is available for a period of five years. You can get a loan up to 25 percent of the amount deposited in your account. Loan can be availed only once in a financial year. The second loan will not be available until the first loan is repaid. If the loan is repaid within three years, the interest rate will be only 1% per annum. If the loan is repaid after three years, the interest rate will be 6 per cent per annum.
Pre-mature Withdrawal Rules
Talking about withdrawals, withdrawals can be made once in a financial year after a lock-in period of five years. This can be up to 50 percent of the amount deposited in your account. Talking about premature closure, it is allowed in case the account holder becomes ill or for higher education of self or children. For this some charges are deducted.