Investment Tips: This government scheme will help you earn a lot, invest 1000 rupees every month..


Whenever it comes to investing in a government scheme, the name of the Public Provident Fund (PPF) comes up. This is one of the popular schemes of the post office. In this government-guaranteed scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh. The PPF scheme matures in 15 years. Along with this, tax benefits are also available in it.


If you want to deposit a lot of money for your child's future through long-term investment, then this scheme can prove to be a better option. At present, interest is being given on this scheme at the rate of 7.1 percent. If you keep depositing Rs 1000 in the name of the child in this scheme every month, then you can add more than Rs 8 lakh for him. Understand from calculation what you have to do for this.

This is how you will get more than 8 lakhs
If you invest Rs 1,000 every month in this scheme, then you will invest Rs 12,000 in a year. The scheme will mature after 15 years, but you have to extend it twice in blocks of 5 years each and continue the investment for 25 years continuously. If you invest Rs 1,000 every month for 25 years, then you will invest a total of Rs 3,00,000. But at the rate of 7.1 percent interest, you will get Rs 5,24,641 only from interest and your maturity amount will become Rs 8,24,641.

This is how the extension will happen with contribution
PPF account extension is done in blocks of 5 years each. In the case of PPF extension, the investor has two options - first, account extension with contribution, and second, account extension without investment. You have to get an extension with a contribution. For this, you will have to give an application to the bank or post office, wherever you have an account. Keep in mind that you have to give this application before the completion of 1 year from the date of maturity and a form has to be filled for extension. The form will be submitted to the same post office/bank branch where the PPF account has been opened. If you are unable to submit this form on time, then you will not be able to contribute to the account.


There will also be tax savings in three ways
PPF is an EEE category scheme, so you will get tax exemption in three ways in this scheme. EEE means Exempt Exempt Exempt. In the schemes falling under this category, there is no tax on the amount deposited annually, apart from this, there is no tax on the interest earned every year and the entire amount received at the time of maturity is also tax-free, that is, there is tax saving in all three – investment, interest/return and maturity.

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