Everyone wants to invest for their future. To do this, they look for good plans and invest in them. However, many people invest in plans that offer high returns. The Post Office Public Provident Fund (PPF) is considered the most popular and safest plan for this purpose. Investing in this plan can definitely make you rich. 

Investing in post office plans provides financial support in old age. Post office plans are very beneficial for those who do not hold government jobs. Currently, the government offers an annual interest rate of 7.1% on PPF plans. Interest in this plan is calculated based on the account balance from the 5th of each month to the end of the month. Therefore, if you make a deposit between the 1st and 5th of each month, you also receive interest for that month.

PPF is an EEE (Exempt-Exempt-Exempt) status plan. Investments up to ₹1.5 lakh per year are eligible for tax deduction under Income Tax Section 80C. Furthermore, the entire maturity amount is tax-free. Therefore, this scheme is beneficial for both tax savings and long-term wealth creation.

The tenure of this scheme is 15 years. However, investors have the option to extend their accounts for an additional 5 years. This allows them to build a larger corpus by leveraging compound interest.

If an investor deposits Rs 12,500 per month, or Rs 1.5 lakh per year, into a PPF account, their total investment will reach Rs 22.50 lakh in 15 years. At an interest rate of 7.1%, a corpus of Rs 40.68 lakh can be created at maturity.

Subsequently, if the account is extended twice, i.e. for another 10 years, and the investment continues, the total investment in 25 years would be Rs 37.50 lakh. After taking advantage of compound interest, the total could exceed Rs 1.03 crore. Therefore, the PPF scheme is beneficial for disciplined investors looking to become wealthy.

PC: Rochak Khabre