If you are planning to invest, then you can invest money in small savings schemes of the post office. Public Provident Fund is also included in these schemes of the post office. Not only will you get more interest by investing in it, but you will also get the facility of tax exemption.
The special thing is that your money is completely safe on investment in the PPF account included in the Post Office Small Savings Schemes. There is no risk involved in this. Along with this, there is no need of huge amount to invest in it. You can start investing in this with a small amount as well.
Know how much return you get
PPF is currently getting 7.1 percent annual interest, which is higher than normal bank FDs. Interest is paid on an annual basis compounding. This rate is applicable from 1st April 2020. Its maturity period is 15 years. This does not include the financial year in which the account was opened.
No need to invest huge amount
If you want to invest in this post office scheme, then a huge amount is not required for this. You can start investing with as little as Rs 500 in a financial year. The maximum amount that can be invested in this scheme is Rs 1.50 lakh. You can deposit this amount in lump sum or invest in installments.
Know who can open an account
An adult can open an account in this scheme of Indian Post Office. A guardian can also open a PPF account in the post office on behalf of a minor or a person of weak mind. This account can be opened in any post office across the country.
Tax exemption under 80C
Tax exemption is also available on the amount deposited in this post office scheme. As an investor, you can claim deduction under section 80C of the Income Tax Act.