Post Office Scheme: The majority of investors believe they can build a sizable fund even with a tiny monthly payment. Employed investors search for a plan in which they can make monthly investments that add up to a corpus of more than Rs 1 crore. Your goal can be to develop a sizable fund in the post office’s Public Provident Fund (PPF). This plan not only offers you the chance to save money safely, but the compound interest it offers has the potential to turn you into a billionaire. It is currently receiving interest at a rate of 7.1 percent.
How a Monthly Investment of Rs. 12,500 Can Grow to Rs. 40.68 Lakh
PPF accounts simply require a deposit of Rs. 500. A maximum of Rs 1.5 lakh can be deposited into your PPF account each year. If you make a monthly payment of Rs 12,500 into your PPF account, you would receive Rs 40.68 lakh at maturity. PPF accounts expire after 15 years. You can, however, add another five years to it once you reach maturity. This indicates that you have a total of 25 years to invest in this plan. It will allow you to withdraw your funds after 15, 20, or 25 years.
| Monthly Investment | Money in 15 years (Rs) | Money in 20 years (Rs) | Money in 25 years (Rs) |
|---|---|---|---|
| 1000 | 3.18 | 5.24 | 8.17 |
| 2000 | 6.37 | 10.49 | 16.35 |
| 3000 | 9.55 | 15.73 | 24.52 |
| 5000 | 15.92 | 26.23 | 44.88 |
| 10,000 | 31.85 | 52.45 | 81.76 |
| 12,500 | 39.82 | 65.57 | 1.02 crore |
Timing, Penalties, and Account Flexibility
Following the year the PPF account was opened, you have five years until you can withdraw any funds. Money may be withdrawn after five years has passed by completing Form 2. However, there will be a 1% penalty if you remove your money before 15 years have passed. This account can be opened in anyone’s name at any post office or bank. The account may also be opened on behalf of the youngster by another individual.
Flexibility for Individuals and Children, Limitations for HUFs
Any bank or post office is able to open a PPF account for you. It can be opened in your name for your child. It is not possible to register a PPF account in the name of a Hindu Undivided Family (HUF), nonetheless.
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