If you save small amounts and earn good returns, the savings scheme offered by the central government is perfect for you. It currently has an interest rate of 7.1%. If you earn Rs. 100 daily, you can get Rs. 10 lakhs after maturity. Not only that, there are also three types of tax benefits. Know about this scheme now.
The Public Provident Fund (PPF) is one of the small savings schemes offered by the central government and is available at post offices and banks. By joining it, you can get good returns and tax benefits. By saving little by little, you can receive much money at once. Also, under section 80C of the Income Tax Act, the investment is exempted, and no tax is payable on the interest and maturity amount. This means EEE tax benefits are available. Now let us know about this scheme.
The Public Provident Fund Scheme has a maturity tenure of 15 years, extendable at the rate of 5 years. Currently, the Centre is providing a 7.10% interest rate in this scheme. However, the Centre reviews the interest rates every three months, so the interest rate may increase or decrease. When the interest rate increases, so does the return. In this scheme, you can invest Rs. 100, Rs. 200, or Rs. 300 per day.
Investing Rs. 10 lakhs at Rs. 100 per day means Rs. 3,000 per month and Rs. 36,000 annually. You should invest Rs. 36,000 per year for 15 years, totalling an investment amount of Rs. 5,40,000. Assuming returns at the current interest rate of 7.1%, the interest on your money would be Rs. 4,36,370, making a total of Rs. 9,76,370 available.
However, you can extend your investment for another 5 years. This means if the investment is continued for 20 years at the rate of Rs. 36,000 per annum, after maturity, the interest in the form of Rs. 8.80 lakhs will be received, totalling around Rs. 16 lakhs. If you extend the tenure for another five years, you can get up to Rs. 25 lakhs.
