How much returns will you get by investing how much money in Post Office PPF Yojana. If you are thinking of earning interest by investing your money in a trustworthy and safe way, then the PPF scheme of the post office will be a better option for you. You can create a big amount by making your future financially safe by investing short with long periods under this scheme.
Under the scheme, both interest and investment amount received on investment funds is both tax free. In such a situation, by investing in this scheme, you can fulfill your financial dream. If you want to take advantage of this scheme, then definitely read this post till the end. Here we have covered all the important things related to the PPF (Public Provident Nidhi) scheme of the post office. So let’s know in detail about this scheme of post office!
Post Office PPF Yojana
The PPF (Public Provident Fund) scheme of the post office is a long -term savings scheme being run by the government. Which was started in 1968. Under this scheme, you can invest your money for 15 years. If you want to invest in it for more time, then you can extend its duration several times for 5-5 years.
The special thing about the scheme is that you can invest minimum 500 rupees annually and maximum Rs 1.5 lakh annually. Investing more than 1.5 lakhs, you will not get the benefit of tax exemption on your additional amount. In this, both the amount and interest amount received is tax free. People from both rural and urban areas can benefit from this post office scheme.
Post Office PPF Interest Rate
Talking about the PPF Account Interest Rate of the post office’s PPF scheme, currently there is 7.1% interest rate. The interest rate should be decided by every quarterly government. From time to time, the interest rate changes. PPF account interest rate is kept equally in post offices and all banks.
Documents required to open an account in Post Office PPF Plan
You will need the following documents to open an account under Post Office PPF Scheme.
Identification Certificate:
Aadhaar Card,
Voter ID,
Driving License,
Passport,
PAN Card
Address proof:
Electricity bill,
Aadhaar card,
voter ID,
residence certificate
Photo: 3 passport size photo
Income proof: Income certificate
Other: Post Office Account Passbook
Application process for opening an account in Post Office PPF Yojana
How to Open PPF Account in Post Office: Currently, the facility of opening an online PPF account is not available at the post office. Therefore, you have to open a PPF account only by going to the nearest post office. The application process of account opening is as follows.
You have to go to your nearest post office and first get complete information related to PPF scheme.
Then you will have to get the application form to open PPF account from the officials there.
Now fill all the information asked in the application form carefully. And attach the photocopy of the required documents along with the application and submit it to the officers.
After completing such a process, your PPF account will open in the post office. After this you have to deposit the initial amount in the account.
After the post office PPF Account is active, the officers will give you the passbook of the account. Which will include all the information related to the account.
Post Office PPF Scheme Features
A minimum of Rs 500 can be invested annually in the post office PPF scheme. And a maximum of Rs 1.5 lakh can be invested annually.
The duration of maturing of investment amount in PPF scheme is 15 years. Which can be extended several times by doing 5-5 years.
In this scheme, there is a benefit of tax exemption under Section 80C of the Investment amount, interest amount and main tax Act.
The investment amount can be deposited by 12 installments in 1 year or you get the facility to deposit once annually.
The interest rate given in the PPF scheme of the post office is 7.1%. This interest rate is fixed by the government every quarter.
The account cannot be closed before the completion of 15 years. But in some special circumstances, facility to close the account ahead of time is provided. Only after completion of 7 years on emergency, you can do partial withdrawal till maturity.
The PPF account holder gets the facility to take loan at a low interest rate after 3 years of investing funds.
Like a bank account, a nominee can also be added to the post office PPF account. With this, the account holder can already ensure which member should get this amount.
The amount is paid every year on 31 March.
Post Office PPF Yojana Benefits
This scheme is a government -backed savings scheme, so the investment amount is completely safe by the investor. And the best returns are obtained with a guarantee.
The scheme contains 15 years (Post Office PPF Scheme 15 years) for a long period. Due to which the account holder gets a lot of benefit from compound interest. Yaniki account holder will get the benefit of interest amount on interest.
This scheme of the post office is completely transparent in which no fee is charged from the account holder.
If a person has already opened his PPF account, then he can open a PPF account in the name of a minor child.
Loans are available on the basis of PPF account.
The PPF account opens in the name of a person.
This scheme is very beneficial for those people who cannot invest a large amount.
Eligibility for Post Office PPF Scheme
It is necessary to have the following eligibility to open the post office PPF account.
The person should be an Indian resident to take advantage of the post office PPF scheme.
Any residents of India like jobbers, their own business, pensioners can open their PPF (Indian Post Office PPF) account at the Indian Post Office.
NRI is not allowed to open a PPF account. If an Indian resident PPF account becomes NRI before maturity, he can continue the account until matures.
More than 8 lakh returns will be found like this
If you invest 1000 rupees per month under PPF scheme, then your investment will be 12000 rupees in 1 year. Since the scheme is 15 years, your investment will be Rs 1,80,000 for 15 years. If its duration is increased by 5-5 years and for 10 years, then your total investment will be Rs 3,00,000 for 25 years.
When the maturity of the PPF account is completed, then you will get an interest of Rs 5,24,641 according to the interest rate of 7.1% on the investment amount. In this way, at the end of 25 years, you will get a total maturity amount of Rs 8,24,641 at the end of 25 years.
Post Office PPF Calculator
If you want to continue investing for more years after 15 years, then let us know how much investment amount, interest amount and main amount will be at 7.1% interest rate for different years.
Investment per month (rupee) period interest amount
500 15 years 72,728 1,62,728
500 20 years 1,46,332 2,66,332
500 25 years 2,62,321 4,12,321
1000 15 years 1,45,457 3,25,457
1000 20 years 2,92,663 5,32,663
1000 25 years 5,24,641 8,24,641
1000 30 years 8,76,073 12,36,073
2000 15 years 2,90,913 6,50,913
2000 20 years 5,85,326 10,65,326
2000 25 years 10,49,282 16,49,282
Conclusion
In this article, we have told all the important information related to Post Office PPF Yojana. I hope you liked this information and you have been helpful for you. If you have any question, you can comment and ask us. If you liked the article, do not forget to share it.
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FAQ’s: Post Office PPF Yojana
Who can open a post office PPF account?
Except NRI and HUF, any person in India can open his PPF account at the post office.
Can PPF account be opened online?
If internet banking facility is available in your nearest post office, then you can open PPF account through online. If the online facility is not available, then you will have to go to the nearest post office and open a PPF account.
What will happen to the amount if the account holder dies?
When the account holder dies, the nominee is given the entire amount of the account and the PPF account is closed.
Can PPF account be transferred to another post office or bank?
Yes, you can transfer your PPF account to another post office or bank, for this you will have to fill the application and submit it to the existing post office.
Can money be withdrawn before the PPF account maturity is completed?
Yes, after the completion of 7 years from the date of opening the account, you can do partial withdrawal. But you can withdraw up to a certain percentage of the amount in your account.
