Post Office Scheme: Deposit of Rs 12,000 monthly to get Rs 1.03 cr on maturity; here’s how

New Delhi: If you're seeking a risk-free way to invest your money, here's a great option for you. Small savings at the post office are a preferable option for such investors. Because it is a government programme, you can be sure that you will get a good return on your investment. These post office savings plans have maturities ranging from one to fifteen years. You should invest in the Public Provident Fund if you have a long-term investment strategy (PPF).

This post office savings scheme offers a 7.1 percent annual compounding interest rate. This scheme has a 15-year maturity, but it can be extended for another 5 years after that. You can carry the fund forward if you don't need it at the end of the 15-year period. You will get greater compounding benefits as a result of this. 

The maximum amount that can be placed in this saving scheme is Rs 1.50 lakh each year. Instead of depositing Rs 1.50 lakh once a year, you can make monthly deposits of Rs 12500.

Furthermore, under Section 80C of the Income Tax Act, you can benefit from a tax exemption on your PPF account. The interest and maturity income earned in this account is tax-free as well.

On an investment of Rs 22.5 lakh in the savings scheme, you will receive Rs 18 lakh in interest.

Maturity: 15 years

Monthly investment: Rs 12,500

1 year Investment: Rs 1.50 lakh

Total investment in 15 years: Rs 22.50 lakh

Annual Interest rate: 7.1 percent

Maturity amount: Rs 40.70 lakh

Interest benefit: Rs 18.20 lakh

If you deposit Rs 12,500 for 25 years

Monthly Investment: Rs 12,500

Total Investment in a year: Rs 1.50 lakh

Total Investment in 25 years: Rs 37.50 lakh

Annual Interest Rate: 7.1 percent

Maturity Amount: Rs 1.03 crore

Interest Benefit: Rs 62.50 lakh