Most people still believe that investment in the stock market & mutual funds are very risky and avoids investing due to less information. However, people want their savings to grow rapidly. And thus post office comes in mind.
There are many savings schemes here, which can make people millionaires. These schemes also help people save income tax.
What is the savings plan?
Public Providence Fund (PPF) is a post office scheme which makes a small savings of people bigger. In addition to good interest on money deposited in this account, there are two benefits, given below:
- Saving from income tax.
- When this money is received then it is totally tax-free.
If someone has invested one crore rupees by investing in this scheme, then he will not have to pay any tax in the year of maturity.
How the fund of Rs 1 crore will be ready?
Currently, 8% interest is available in the PPF scheme. This scheme is for 15 years, which can not be closed in the middle. Income tax of Rs 1.5 lakh can be saved every year by depositing a maximum of Rs. 12500/- in this scheme. But if this plan Rs 7500/- is to be deposited only for every monthly amount, then in the 30 years tax-free fund of Rs 1 crore will be ready.