Post Office Scheme : The post office has a few projects going on that can make you absolutely broke in a matter of days. Post office commodity schemes include Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra (KVP) and Public Provident Fund i.e. PPF etc.
- Sukanya Samriddhi Yojana (SSY) : ‘Sukanya Samriddhi Account’ (Sukanya Samriddhi Accounts) is made to protect the lives of minors and avoid any problems during higher education. The account will be automatically closed when the minor reaches 21 years of age. With that, the entire deposit will be available with interest. This scheme earns interest at the rate of 7.6 percent.
How much money can be kept in the ‘Sukanya Samriddhi’ project?
Sukanya Samriddhi accounts can be opened in the name of a minor before the completion of 10 years. Basically this account is opened in the post office. Only one account can be opened in the name of a minor in this scheme. It can be deposited from a minimum of 250 taka to a maximum of 1.5 lakh taka per year. The account will be closed when the minor reaches the age of 21 years. Also the deposit is refundable. However, after completing 18 years, money can be withdrawn for marriage or higher education.
2. Kisan Vikas Patra (KVP) : KVP is a savings scheme certificate that you Can be purchased from a bank or post office In this scheme, the deposit amount now doubles in 9 years 7 months. The scheme was discontinued again in 2011. But, it was relaunched in November, 2014.
- Interest rate is : 7.5%
- Duration : 115 months
- Minimum age is : 18 years
- Investment Amount : Minimum: Rs.1,000
- Maximum: No maximum limit
- Tax Exemption Under Section 80C of the Income Tax Act, 1961, tax exemption is available up to Rs.1.5 lakh.
Public Provident Fund i.e. PPF : The full form of PPF is public provident fund PPF is a government scheme run by the central government. In this scheme income tax is four and very good return is available which is completely tax free, so it can be said that-
- PPF is completely risk free.
- Many tax exemptions are available in case of PPF.
- PPF is known as long term investment.
If you are thinking of earning crores of rupees, then PPF scheme can be the best option for you. You can become a millionaire by investing a very small amount in PPF scheme. Before investing, know about all its details.
Post Office PPF scheme is paying interest at 7.1 percent. According to calculations, if you keep earning interest on your investments like this, you can be a millionaire in 30 years. For this you need to save Rs 8,000 per month ie Rs 666 per day. After that, you will get 7.1 percent interest on the 30-year investment.
If you deposit Rs 8,000 per month in your PPF account, the investment amount in 30 years will be Rs 28.80 lakh, while your return at 7.1% will be Rs 70.08 lakh. That is, after 30 years, you will have a fund of Rs 98.88 lakh ready with you.
Keep in mind that the 7.1 percent interest rate could go down and up in the future. If this rate increases, you will become a millionaire before 30 years. It will take longer to become a millionaire if this interest rate goes down.
P.P.F Advantages : Since PPF is a government scheme it has many advantages. Advantages of PPF are-
- PPF is a safe investment.
- PPF is fixed by the government and you will get your return on time.
- The tax benefits of PPF are great
- We know long term investment is needed to build wealth, in this case PPF and long term investment are good choices.
- PPF has special legal protection. As a result, no bank or court can seize your money if you have any loan or any debt.
What qualifications do you need to do PPF?
The qualifications you need to apply for PPF are-
- As this is a Government of India scheme you must be an Indian citizen.
- You can open PPF for minor child i.e. children below 18 years and mentally challenged person. Even if you can open a PPF account for a minor child i.e. children below 18 years, the limit will be up to 1.5 lakh rupees. Suppose you have a PPF account in which you have 1.5 lakh rupees, if you want to keep another 1.5 lakh rupees in a PPF account in the name of your son or daughter, then your total amount will not be but 1.5 lakh rupees.
- If you open a PPF account in the name of your minor i.e. son or daughter below 18 years of age and when he/she is above 18 years of age he/she can manage the account himself/herself. Suppose you have maintained the PPF account in the name of your son or daughter for ten years but for the remaining five years your son or daughter can maintain the account when they become adults.
- In PPF you can open individual account, but in PPF you cannot open joined account.
- You can open PPF account even if you are already receiving money under EPS scheme.
- But those who have joined PAN card in the joined family cannot open PPF account, because PPF account can be opened only individually.
Can Non Indian Citizen (NRI) open PPF account?
- Once you become a foreigner, you cannot open a new PPF account.
- Suppose you are a foreign traveler during the period of your PPF account then two conditions may apply to you – firstly, you can pre mature close and secondly you can operate the PPF account without any extension. That is, PPF account is for 15 years, you can run the account for 15 years but not more than that.
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