Post Office Scheme: Invest Rs 417 everyday to become a millionaire, here`s how

New Delhi: The Post Office's Public Provident Fund offers you the opportunity to become a millionaire. You only need to invest Rs 417 per day to achieve this. Although this account has a 15-year maturity period, you can extend it twice for further 5-5 years. In addition, you will receive a tax benefit from this plan. At the same time, the most important aspect of this plan is that you will earn 7.1 percent interest yearly, as well as the benefit of compound interest every year. Here’s what you need to know about the nitty gritties of the plan.

If you invest for 15 years, or till maturity, and put aside a maximum of Rs 1.5 lakh every year, or Rs 12,500 per month and Rs 417 per day, your total investment will be Rs 22.50 lakhs. You'll also enjoy the benefit of compounding at maturity, with an annual interest rate of 7.1 percent. You will receive Rs 18.18 lakh as interest when the loan matures. That means, you will receive Rs 40.68 lakh in total

On the other hand, if you want to make a million dollars through this method, you can double your investment after 15 years for a total of 5-5 times. Your total investment will be Rs 37.50 lakh if you invest Rs 1.5 lakh per year. With a 7.1 percent interest rate, you will receive Rs 65.58 lakh at maturity. That is, your entire fund will be 1.03 crores after 25 years.

Eligibility

Any resident, including salaried, self-employed, and pensioners, can open a Post Office PPF account.

This account can only be opened by one person.

This isn't a place where you can open a joint account.

A minor PPF account can be opened in the post office on behalf of the minor kid by the parent or guardian.

It is not possible for non-resident Indians to open an account there. If a resident Indian becomes an NRI before the PPF account matures, he can still use the account till it matures.

Documents Required

Identity Proof – Voter ID, Passport, Driving License, Aadhar Card

Address Proof – Voter ID, Passport, Driving License, Aadhar Card

Pan Card

Passport Size Photograph

Enrollment Form – Form E

Features

1. A maximum of Rs 1.5 lakh can be deposited in a PPF account in a single financial year.

2. The amount of money you can put into a Post Office PPF is restricted to 12 every year.

3.PPF is an EEE investment, which means that the principal, interest, and maturity amounts are all tax-free.

4. The account must be kept active with a minimum annual investment of Rs.500.

5. The interest earned on a Post Office PPF account is compounded annually and paid on March 31st of each year.